Hammond Manufacturing Inc. was legally incorporated on January 2, 2020. Its articles of incorporation granted it the right to issue an nlimited number of common shares and 100,000 shares of $14.3 non-cumulative preferred shares. The following transactions are mong those that occurred during the first three years of operations: 2020 Jan. 12 Issued 40,450 common shares at $4.7 each. 20 Issued 5,000 common shares to promoters who provided legal services that helped to establish the company. These services had a fair value of $35,000. 31 Issued 79,000 common shares in exchange for land, building, and equipment, which have fair market values of $359,000, $479,000, and $47,000, respectively. Mar. 4 Purchased equipment at a cost of $8,150 cash. This was thought to be a special bargain price. It was felt that at least $10,700 would normally have had to be paid to acquire this equipment. Dec. 31 During 2020, the company incurred a loss of $95,000. The Income Summary account was closed. 2021 Jan. 4 Issued 4,000 preferred shares at $71 per share. Dec. 31 The Income Summary account was closed. Profit for 2021 was $215,000. 2022 Dec. 4 The company declared a cash dividend of $0.32 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 $190,115. The Income Summary account was closed. "equired: Journalize the transactions for the years 2020, 2021, and 2022. The company does not use a cash dividends account. View transaction list Journal entry worksheet 1 2 3 4 5 6 7 8 9 10 > Record the issuance of shares.
Hammond Manufacturing Inc. was legally incorporated on January 2, 2020. Its articles of incorporation granted it the right to issue an nlimited number of common shares and 100,000 shares of $14.3 non-cumulative preferred shares. The following transactions are mong those that occurred during the first three years of operations: 2020 Jan. 12 Issued 40,450 common shares at $4.7 each. 20 Issued 5,000 common shares to promoters who provided legal services that helped to establish the company. These services had a fair value of $35,000. 31 Issued 79,000 common shares in exchange for land, building, and equipment, which have fair market values of $359,000, $479,000, and $47,000, respectively. Mar. 4 Purchased equipment at a cost of $8,150 cash. This was thought to be a special bargain price. It was felt that at least $10,700 would normally have had to be paid to acquire this equipment. Dec. 31 During 2020, the company incurred a loss of $95,000. The Income Summary account was closed. 2021 Jan. 4 Issued 4,000 preferred shares at $71 per share. Dec. 31 The Income Summary account was closed. Profit for 2021 was $215,000. 2022 Dec. 4 The company declared a cash dividend of $0.32 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 $190,115. The Income Summary account was closed. "equired: Journalize the transactions for the years 2020, 2021, and 2022. The company does not use a cash dividends account. View transaction list Journal entry worksheet 1 2 3 4 5 6 7 8 9 10 > Record the issuance of shares.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter16: Retained Earnings And Earnings Per Share
Section: Chapter Questions
Problem 19P: Anoka Company reported the following selected items in the shareholders equity section of its...
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Transcribed Image Text: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 $14.3 non-cumulative preferred shares. The following transactions are
among those that occurred during the first three years of operations:
2020
Jan. 12 Issued 40,450 common shares at $4.7 each.
20 Issued 5,000 common shares to promoters who provided legal services that helped
to establish the company. These services had a fair value of $35,000.
31 Issued 79,000 common shares in exchange for land, building, and equipment, which
have fair market values of $359,000, $479,000, and $47,000, respectively.
Mar. 4 Purchased equipment at a cost of $8,150 cash. This was thought to be a special
bargain price. It was felt that at least $10,700 would normally have had to be
paid to acquire this equipment.
Dec. 31 During 2020, the company incurred a loss of $95,000. The Income Summary account
was closed.
2021
Jan. 4 Issued 4,000 preferred shares at $71 per share.
Dec. 31 The Income Summary account was closed. Profit for 2021 was $215,000.
2022
Dec.
4 The company declared a cash dividend of $0.32 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 $190,115. 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.
View transaction list
Journal entry worksheet
1
2
3
4 5 6
789 10
>
Record the issuance of shares.
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