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Hammond Manufacturing inc was legally incorporated on January 2,2023 its arteles of incorporation granted if the right to issue at unlimited number of common shares

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Hammond Manufacturing inc was legally incorporated on January 2,2023 its arteles of incorporation granted if the right to issue at unlimited number of common shares and 100,000 shares of $13,6 non-cumulative preferred shares. The following transactions are among those that occurred during the first three years of operations: 2023 Jan. 12 Issued 40,100 comnon shares at 54.0 each. 20 Issued 3, ege common shares to pronoters who provided legal services that helped to establish the company. These services had a fair value of 528,000 . 31 Issued 72,tee common shares in exchange for land, building, and equipment, which have fair market values of $352,000,5472,690, and $40,000, respectively. Mar, 4 Purchased equipment at a cost of 58, e8s cash. This was thought to be a special bargain price. It was felt that et least 810,89e would normally have had to be paid to acquire this equipment. Dec, 31 puring 2e23, the conpany incurred a loss of 588,00e. The Income summary account was closed. 2824 Jan, 4 Issued 3 , eee preferred shares at 564 per share. Dec. 31 The Incone sunnary account was closed. Profit for 2024 was 5288,e00. 2925 Dec. 4 The company declared a cash dividend of $9,82 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 Decenber 4 . 31 Profit for the year ended Decenter 31, 2625, kas $160,460. The Incoee summary account was closed: 1. Journalize the transactions for the years 2023,2024 , and 2025. The company does not use a cash dividends account. 2. Prepare the statement of changes in equity for the year ended December 31,2025 . (Amounts to be deducted should be indicated by a minus sign.) 3. Prepare the equity section on the December 31,2025 , balance sheet Analysis Component: Determine the net assets of Hammond Manufacturing Inc. for 2023, 2024, and 2025. Is the trend favourable or unfavourable

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