Hammond Manufacturing Inc. was legally incorporated on January 2, 2020. Its articles of incorporation granted the right to me unlimited number of common shares and 100,000 shares of $13.9 non cumulative preferred shares. The following transactions are among those that occurred during the first three years of operations 652 2020 Jan. 12 Issued 40,250 common shares at $4.3 each. 20 Issued 7,000 common shares to promoters who provided legal services that helped to establish the company. These services had a fair value of 531,000 31 Issued 75,000 common shares in exchange for land, building, and equipment, which have fair market values of $355,000, $475,000, and 543.000, respectively. Mars 4 Purchased equipment at a cost of 58,110 cash. This was thought to be a special bargain price. It was felt that at least 510,300 wold normally have had to be paid to acquire this equipment. Dec. 31 During 2020, the company incurred a loss of 591,000. The Income Summary account was closed. 2021 4 Issued 3,000 preferred shares ot 567 per share Dec. 31 The Income Summary account was closed. Profit for 2021 was 5211,000 2022 Dec 4 The company declared a cash dividend of $0.72 per share on the common shares payable on December 18 and also declared the required dividend on the preferred shares. 18 Paid the dividends declared on December 4 31 Profit for the year ended December 31, 2022, was $173,075. The Income Summary account was closed. Required: 1. Journalize the uansactions for the years 2020 2021. and 2022. The company does not use a cash dividends account 2. Prepare the statement of changes in equity for the year ended December 31, 2022. (Amounts to be deducted should be by a minus sign.) HAMMOND MANUFACTURING INC Statement of Changes in Equity For Year Ended December 31, 2022 Preferred Common Shares Shares Retained Earnings Total Equity Balance, January 1 + s 0$ 0 0 $ Balance, December 31