Part 3 above as part Problem 12-7A Share transactions, statement of changes in equity, dividend distribut closing co2, 3, 4, 5, 6 CHECK FIGURES: 2. Retained earnings, Dec 31, 2022 = $224,880; 3. Total equity = $1,700,880 granted it the right to issue an unlimited number of common shares and 100,000 shares of $14.40 non cumulative preferred shares. The following transactions are among those that occurred during the first three years of operations: Hammond Manufacturing Inc. was legally incorporated on January 2, 2020. Its articles of incorporation 852 CHAPTER 12 Ogion and Operation of Corporations sued 40.000 common shares at $4.80 each sued 6,000 common shares to promotes who provide services that helped to the com These services had a fair value of $36,000 Sued 80.000 common shares in exchange tot und bundma and equipment which have to $360,000, $480,000, and $48.000, respectively urchased equipment at a cost of $8,160 cash. This was thought to be a special Dargain price that at $10,800 would normally have had to be paid to acquire the equipment juring 2020, the company incurred a loss of $98.000. The Income Summary account was cond. 202 an Dec 31 sued 5,000 preferred shares at 572 per share the income Summary account was closed Profa tot 2021 was $216,000 2022 4 Der The company declared a cash dividend of $0 12 per share on the common shares payable on December 1 and also declared the required dividend on the preferred shares Paid the dividends declared on December 4. Profit for the year ended December 31, 2022 was $192.000 The Income Summety and Cash Dividends 18 31 accounts were closed. Required 1. Journalize the transactions for the years 2020, 2021, and 2022. 2. Prepare the statement of changes in equity for the year ended December 31, 2022. 3. 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 favourable or unfavourable? Explain. non tatement of changes in equity L02,3,4,5,6 1 31 2021 = $2,666,300
