Provide a concise, complete answer for each question. Assume that the fiscal year end for Hawkeye Inc. is December 31^st, and that Hawkeye recognizes revenue only after the products have been delivered to the customer.

1. Hawkeye purchases bandanas for $2.00 a bandana and sells them for $4.00 a bandana. On August 1, 20X1, a customer paid (in cash) one-half of the purchase price for 5,000 bandanas (# of units) to be delivered on September 1 and October 1 (2,500 bandanas delivered on each date). The customer paid the remainder of the bill (in cash) on October 1.

NOTE: Question 1 contains parts a-e below.

a. Provide the journal entry(ies) Hawkeye made on August 1, 20X1. (4 points)

b. Provide the journal entry(ies) made on September 1, 20X1. Be sure to include an entry for cost of goods sold, if needed. (4 points)

c. Provide the journal entry(ies) made on October 1, 20X1. Be sure to include an entry for cost of goods sold, if needed. (4 points)

d. What is the cumulative effect (amount and direction) of the transactions above on Hawkeye Inc.s net income (ignore any tax effects)? (3 points)

e. Do the transactions above increase, decrease, or have no effect on Hawkeye Inc.s ROA? Assume Hawkeye Inc.s ROA was 100% before the transactions (that is a very high ROA), i.e., for every dollar of assets, Hawkeye generated a dollar of net income. (3 points)