Hammond Manufacturing Ing was legally Incorporated on January 2, 2020. Its articles of Incorporation granted it the right to Issue an unlimited number of commod shares and 100,000 shares of $14.2 non-cumulative preferred shares. The following transactions are among those that occurred during the first three years of operations: 2020 Jan. 12 Tenued 40,500 common shares at $5.8 each. 20 Ianued 4,000 common shares to promoters who provided legal services that helped to establish the company. These services had a fair value of $46,000. 31 Issued 90,000 common shares in exchange for land, building, and equipment, which have fair market values of $370,000, $490,000, and $50,000, respectively. Mar. 4 Purchased equipment at a cost of $0,260 cash. This was thought to be a special bargain price. It was felt that at least $11,00 would normally have had to be paid to acquire this equipment. Dec. 1 During 2020, the company incurred a lot of $106,000. The Income Summary account was closed. 2021 Jan. Innued 5,000 preferred shares at 596 per share. Deci the nome puntary account was closed. Profit for 2021 w $226,000. 2022 Dec. The company declared a cush dividend of $0.22 per share on the common shares payable on December 18 and also declared the required dividend on the preferred shares. 10 Paid the dividende declared on December 4. 31 Profit for the year ended December 31, 2022, VAS $234,900. The Income Summary account was closed. Required: 1. Journalize the transactions for the years 2020, 2021, and 2022. The company does not use a cash dividends account. Answer is complete but not entirely correct. Quran Journal Ch. De Jan 12, 2020 234,800 1 Cash Common share DIO 234,800 2 Jan 20, 2029 48,000 0,2ohin Organisation experien Common shares ol 46,000 3 Jan 31, 2020 Land Building Equipment Common share olololo 370,000 490,000 50.000 218,000 4 Mar 04, 2020 8,260 Equipment Cash OO 3,260 5 Dec 31, 2020 105,000 Ratained earnings Income summary O 106 000 6 Jan 04, 2021 450,000 Cash Preferred shares olo 480 000 7 Dec 31, 2021 226,000 Income summary Retained earnings . O 226.000 8 Dec 04, 2022 122.408 Retained earings Preferred dividends payable Common dividends payable Ollo 71.000 51 408 . Dec 18, 2002 Preferred dividends payable Common dividends payable Cash ololo 71,000 51,408 122 408 10 Dec 31, 2002 234.900 income summary Ratindering 234.900 2. 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) Answer la not complete HAMMONO YACTURINO WE of Changes in Equity FaYe Dember 11, 2002 Preferred Commen Rated har Bhara Earnings Elity $ 480,000 $ 1,198,900 $ 120,000 $1,790,000 Balanga, January 1 suance of shares Pro Dividends Blanc, December 31 ololo 185,840 106,000 15 450.000 $ 1.100.000 305,840 $ 1,904,000 2. Prepare the equity section on the December 31, 2022, balance sheet Answer is not complete HAMMOND MANUFACTURING INC. Equity Section of the Balance Sheet December 31,7022 Contributed capital Preferred wharen, $14.2 noncumulative, 100,000 shares Ruthorized, 5,000 shares issued & outstanding Common shares, unlimited Wares sortized, 134.500 shares med and outstanding OO $ 480,000 1,100,000 $ 1.578.900 Total contributed capital Retained minge a Toul equilty $ 1678.000 Analysis Component: Determine the net assets of Hammond Manufacturing Inc. for 2020, 2021, and 2022. Is the trend favourable or unfavourable? Answer is complete but not entirely correct. 2021 2022 $ 1,007,840 OS 1221,040 5 1,635,272 Favourable 2020 Net met Trend