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Hammond Manufacturing Inc. was legally incorporated on January 2 . 2 0 2 3 . Its articles of incorporation granted it the right to issue
Hammond Manufacturing Inc. was legally incorporated on January Its articles of incorporation granted it the right to issue an unlimited number of common shares and shares of $ noncumulative preferred shares. The following transactions are among those that occurred during the first three years of operations. Jan. Issued conmon shares at $ each. Issued common shares to promoters who provided legal services that helped to establish the company. These services had a fair value of $ Issued connon shares in exchange for land, building, and equipment, which have fair market values of $ $ and $ respectively. Mar. Purchased equipment at a cost of $ cash. This was thought to be a special bargain price. It was felt that at least $ would normally have had to be paid to acquire this equipment. Dec. During the company incurred a loss of $ The Income Summary account was closed. an Issued preferred shares at $ per share. Dec. The Income Summary account was closed. Profit for was $ Dec. The company declared a cash dividend of $ per share on the common shares payable on December and also declared the required dividond on the preferred shares. Paid the dividends declared on December Profit for the year ended December was $ The Income Summary account was closed. Required: Journalize the transactions for the years and The company does not use a cash dividends account.
Hammond Manufacturing Inc. was legally incorporated on January Its articles of incorporation granted it the right to issue an unlimited number of common shares and shares of $ noncumulative preferred shares. The following transactions are among those that occurred during the first three years of operations.
Jan. Issued conmon shares at $ each.
Issued common shares to promoters who provided legal services that helped to establish the company. These services had a fair value of $
Issued connon shares in exchange for land, building, and equipment, which have fair market values of $ $ and $ respectively.
Mar. Purchased equipment at a cost of $ cash. This was thought to be a special bargain price. It was felt that at least $ would normally have had to be paid to acquire this equipment.
Dec. During the company incurred a loss of $ The Income Summary account was
closed.
an
Issued preferred shares at $ per share.
Dec. The Income Summary account was closed. Profit for was $
Dec.
The company declared a cash dividend of $ per share on the common shares payable on December and also declared the required dividond on the preferred shares.
Paid the dividends declared on December
Profit for the year ended December was $ The Income Summary account was closed.
Required:
Journalize the transactions for the years and The company does not use a cash dividends account.
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