Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Graded Homework 16 - Chapter 12 Help 1 25 point Hammond Manufacturing Inc. was legally incorporated on January 2, 2020. Its articles of incorporation granted

image text in transcribed
image text in transcribed
Graded Homework 16 - Chapter 12 Help 1 25 point Hammond Manufacturing Inc. was legally incorporated on January 2, 2020. Its articles of incorporation granted it the right to se unlimited number of common shares and 100.000 shares of $15.0 non cumulative preferred shares. The following transactions are among those that occurred during the first three years of operations 2030 Jam 12 40,300 shares at 35.4 ch. 20 .000 shares to promoters who provided legal services that helped to wstablish the company. The services had fair value of $42.000 11 Issue 16,000 comon shares in exchange for land, bulding and pent, which have fararket value of 5366,000, 46,000, and 154,000, respectively Mare Purchased went at cost of $8,220 cash. This was thought to be a special boreale price. It was felt that at least 511,00 would normally have had to be paid to acmis this equipment Dec. i 2020, the company in a loss of $102,000. The Incry account we closed 2021 Jan Iswed 5,000 preferred the 192 per share Dec 31 The Income Summary account was closed Profit for 2021 was 1222,000 2022 Dec. The company declared dividend of 10. Share on the common share payable in December and also declared the required dividend on the referred share 18 Paid the dividende declared on December 3 Profit for the year ended December 31, 2022, a $217,670 The Income Smary count was closed Required: 1. Journalize the transactions for the years 2020 2021 and 2022. The company does not use a cash dividends account View transaction list View journal entry worksheet No Date General Journal Debit Credit 1 25 Doint 2. Prepare the statement of changes in equity for the year ended December 31, 2022. (Amounts to be deducted should be indicated by a minus sign. RO HAMMOND MANUFACTURING INC. Statement of Changes in Equity For Year Ended December 31, 2022 Preferred Common Shares Shares 460 000 Retained Earnings 120,000 Total Equity Balance January 1 issuance of shares Profit Dividends Balance, December 31 217,6201 $ 450.000 $ 0 $ 337,620 $ 0 3. Prepare the equity section on the December 31, 2022. balance sheet

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Fundamental Accounting Principles Volume II

Authors: Larson Kermit, Jensen Tilly

14th Canadian Edition

71051570, 0-07-105150-3, 978-0071051576, 978-0-07-10515, 978-1259066511

More Books

Students also viewed these Accounting questions

Question

1. Why do situations such as these occur?

Answered: 1 week ago