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 $13.8 non-cumulative preferred shares. The following transactions are among those that occurred during the first three years of operations:   2020     Jan. 12   Issued 40,200 common shares at $4.2 each.   20   Issued 8,000 common shares to promoters who provided legal services that helped to establish the company. These services had a fair value of $30,000.   31   Issued 74,000 common shares in exchange for land, building, and equipment, which have fair market values of $354,000, $474,000, and $42,000, respectively. Mar. 4   Purchased equipment at a cost of $8,100 cash. This was thought to be a special bargain price. It was felt that at least $10,200 would normally have had to be paid to acquire this equipment. Dec. 31   During 2020, the company incurred a loss of $90,000. The Income Summary account was closed.         2021     Jan. 4   Issued 4,000 preferred shares at $66 per share. Dec. 31   The Income Summary account was closed. Profit for 2021 was $210,000.         2022     Dec. 4   The company declared a cash dividend of $0.82 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 December 4.   31   Profit for the year ended December 31, 2022, was $168,840. 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. 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.)      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?

On July 1, 2021, Tony and Suzie organize their new company as a corporation, Great Adventures Inc. The articles of incorporation state that the corporation will sell 37,000 shares of common stock for $1 each. Each share of stock represents a unit of ownership. Tony and Suzie will act as co-presidents of the company. The following transactions occur from July 1 through December 31.   Jul.   1   Sell $18,500 of common stock to Suzie. Jul.   1   Sell $18,500 of common stock to Tony. Jul.   1   Purchase a one-year insurance policy for $4,920 ($410 per month) to cover injuries to participants during outdoor clinics. Jul.   2   Pay legal fees of $1,900 associated with incorporation. Jul.   4   Purchase office supplies of $1,700 on account. Jul.   7   Pay for advertising of $280 to a local newspaper for an upcoming mountain biking clinic to be held on July 15. Attendees will be charged $50 on the day of the clinic. Jul.   8   Purchase 10 mountain bikes, paying $19,500 cash.…

On June 1, 2018, Wildhorse Company and Sheffield Company merged to form Tamarisk Inc. A total of 876,000 shares were issued to complete the merger. The new corporation reports on a calendar-year basis. On April 1, 2020, the company issued an additional 637,000 shares of stock for cash. All 1,513,000 shares were outstanding on December 31, 2020. Tamarisk Inc. also issued $600,000 of 20-year, 8% convertible bonds at par on July 1, 2020. Each $1,000 bond converts to 44 shares of common at any interest date. None of the bonds have been converted to date. Tamarisk Inc. is preparing its annual report for the fiscal year ending December 31, 2020. The annual report will show earnings per share figures based upon a reported after-tax net income of $1.491.000. (The tax rate is 20%) Determine the following for 202o. (a) The number of shares to be used for calculating: (Round answers to O decimal places, eg. $2,500.) (1) Basic earnings per share shares (2) Diluted earnings per share 1380150 shares

Westby Corp., a high school uniform manufacturer, was authorized to issue an unlimited number of common shares. During January 2020, its first month of operations, the following selected transactions occurred:  Jan. 1   1,000 shares were issued to the organizers of the corporation. The total value of the shares was determined to be $12,700.   5   15,000 shares were sold to various shareholders for $14.20 each.   15   The board of directors declared a cash dividend of $0.82 per common share to shareholders of record on January 19, payable January 31.   20   4,000 shares were issued in exchange for land valued at $50,800. The shares were actively trading on this date at $12.20 per share.   31   Closed the Income Summary account, which showed a credit balance of $172,000.   31   Paid the dividends declared on January 15. Required:a. Journalize the above transactions. The Company does not use a Cash Dividends Account. b. Prepare the equity section of Westby’s balance sheet…