Please Explain Proper Step by Step and Do Not Give Solution In Image Format And Fast Answering Please & Thanks In Advance ? Please help answer question 2 and 3(+Analysis Component), thanks!3ĆHammond Manufacturing Inc. was legally incorporated on January 2, 2020. Its articles of incorporation granted it the right to issue anunlimited number of common shares and 100,000 shares of $14.0 non-cumulative preferred shares. The following transactions areamong those that occurred during the first three years of operations:2020Jan. 12 Issued 40,400 common shares at $5.6 each.20Issued 3,000 common shares to promoters who provided legal services that helpedto establish the company. These services had a fair value of $44,000.31Mar. 4Issued 88,000 common shares in exchange for land, building, and equipment, whichhave fair market values of $368,000, $488,000, and $56,000, respectively.Purchased equipment at a cost of $8,240 cash. This was thought to be a specialbargain price. It was felt that at least $11,600 would normally have had to bepaid to acquire this equipment.Dec. 31 During 2020, the company incurred a loss of $104,000. The Income Summary accountwas closed.2021Jan. 4 Issued 3,000 preferred shares at $94 per share.Dec. 31 The Income Summary account was closed. Profit for 2021 was $224,000.2022Dec. 4 The company declared a cash dividend of $0.92 per share on the common sharespayable on December 18 and also declared the required dividend on the preferredshares.18 Paid the dividends declared on December 4.31 Profit for the year ended December 31, 2022, was $226,240. The Income Summaryaccount was closed. Requirea:1. Journalize the transactions for the years 2020, 2021, and 2022. The company does not use a cash dividends account.No12345678910DateJan 12, 2020Jan 20, 2020Jan 31, 2020Mar 04, 2020Dec 31, 2020Jan 04, 2021Net assetsTrendDec 31, 2021Dec 04, 2022Dec 18, 2022Dec 31, 2022Total contributed capitalRetained earningsTotal equityCashCommon shares2020Organization expensesCommon sharesLandBuildingFavourableEquipmentCommon sharesEquipmentCashRetained earningsIncome summaryCashPreferred sharesIncome summary✔ Answer is complete and correct.Retained earningsRetained earningsPreferred dividends payableCommon dividends payableIncome summary3. Prepare the equity section on the December 31, 2022, balance sheet.General JournalPreferred dividends payableCommon dividends payableCashRetained earningsContributed capitalPreferred shares, $14 noncumulative, 100,000 shares authorized, 3,000 shares issued & outstandingCommon shares, unlimited shares authorized, 131,400 shares issued and outstanding✓**** **** **✓››Answer is not complete.20212022282,000 $ 691,592 x♥✓✓✔✓✓✔✔✓Answer is complete but not entirely correct.HAMMOND MANUFACTURING INC.Equity Section of the BalanceDecember 31, 2022Debit226,240✔44,000✔368,000488,00056,000Show Transcribed Text8,240104,000282,000224,000162,88842,000✔120,888226,240Credit•226,24044,000✔912,0008,240104,000282,000224,00042,000✔120,888✔✔162,888226,240$ 282,000• 226,240Analysis Component:Determine the net assets of Hammond Manufacturing Inc. for 2020, 2021, and 2022. Is the trend favourable or unfavourable?$ 508,240183,352691,592

Financial statements are defined as the records that are prepared by the business entities as per…

Please help answer question 2 and 3 (+Analysis Component), thanks! 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 $14.0 non-cumulative preferred shares. The following transactions are among those that occurred during the first three years of operations: 2020 Jan. 12 Issued 40,400 common shares at $5.6 each. 20 Issued 3,000 common shares to promoters who provided legal services that helped to establish the company. These services had a fair value of $44,000. 31 Issued 88,000 common shares in exchange for land, building, and equipment, which have fair market values of $368,000, $488,000, and $56,000, respectively. Mar. 4 Purchased equipment at a cost of $8,240 cash. This was thought to be a special bargain price. It was felt that at least $11,600 would normally have had to be paid to acquire this equipment. Dec. 31 During 2020, the company incurred a loss of $104,000. The Income Summary account was closed. 2021 Jan. 4 Issued 3,000 preferred shares at $94 per share. Dec. 31 The Income Summary account was closed. Profit for 2021 was $224,000. 2022 Dec. 4 The company declared a cash dividend of $0.92 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 December 4. 31 Profit for the year ended December 31, 2022, was $226,240. The Income Summary account was closed.

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q