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{.}0$ non$-$cumulative preferred shares. The follawing transactions are

among thase that occurred during the first three years of operations

Issued $6,$eee comon shares to pronoters be provided legal services that heleed

to establish the company. These services had a fair value of $$32,$ eee.

$1$ Issued $76,$ eee connos shares in exchange for land, building, and equipant, wich

$4$ Purchased equipnent at a cost of $$8,120$ cash. This was thought to be a s$.$

bargain price. It was felt that at least $$10,480$ would norally mave had to be

paid to acquire this equipnent.

During $2020,$ the company incurred a loss of $$92,800.$ The Incone Surrary account

$2021$

Jan. $4$ Issued $7,$eee preferred shares at $$68$ per share.

$2822$

Issued $7,0$ee preferred shares at $$68$ per stare.

The conpany declared a cash dividend of $$0\mathrm{.}62$ per share on the connon shares

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

shares.

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

$31$ Profit for the year ended Decenber $31,2022,$ was $$177,320.$ The Incone Sumary

account was closed.

Required:

Required: $1.$ Joumalize the transactions for the years $2020,2021,$ and $2022.$ The company does not use a cash dividends account

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.$]$

Prepare the equity section on the December $31,2022,$ balance sheet.

Analysis Component:

Determine the net assets of Hammond Manufacturing inc. for $2020,2021,$ and $2022$ is the trend fawauble or unfawourable?