Hammond Manufacturing Inc. was legally incorporated on January $2,2020.$ Its articles of incorporation granted it the right to issue an

unlimited number of common shares and $100,000$ shares of $$14\mathrm{.}3$ non$-$cumulative preferred shares. The following transactions are

among those that occurred during the first three years of operations:

$2020$

Jan. $12$ Issued $40,450$ common shares at $$4\mathrm{.}7$ each.

$20$ Issued $5,000$ common shares to promoters who provided legal services that helped

to establish the company. These services had a fair value of $$35,000.$

$31$ Issued $79,000$ common shares in exchange for land, building, and equipment, which

have fair market values of $$359,000,$$$479,000,$ and $$47,000,$ respectively.

Mar. $4$ Purchased equipment at a cost of $$8,150$ cash. This was thought to be a special

bargain price. It was felt that at least $$10,700$ would normally have had to be

paid to acquire this equipment.

Dec. $31$ During $2020,$ the company incurred a loss of $$95,000.$ The Income Summary account

was closed.

$2021$

Jan: $4$ Issued $4,000$ preferred shares at $$71$ per share.

Dec. $31$ The Income Summary account was closed. Profit for $2021$ was $$215,000.$

$2022$

Dec. $4$ The company declared a cash dividend of $$0\mathrm{.}32$ per share on the common shares

payable on December $18$ and also declared the required dividend on the preferred

shares.

$18$ Paid the dividends dectared on December $4.$

$31$ Profit for the year ended December $31,2022,$ was $$190,115.$ The Income Summary

account was closed.

Required:

Journalize the transactions for the years $2020,2021,$ and $2022.$ The company does not use a cash dividends account.

Journal entry worksheet