Hammond Manufacturing Inc. was legally incorporated on January 2, 2023. Its articles of incorporation 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: 2023 Jan. Mar. Dec. 12 Issued 40,000 common shares at $4.80 each. 20 Issued 6,000 common shares to promoters who provided legal services that helped to establish the company. These services had a fair value of $36,000. 31 Issued 80,000 common shares in exchange for land, building, and equipment, which have fair market values of $360,000, $480,000, and $48,000, respectively. 4 Purchased equipment at a cost of $8,160 cash. This was thought to be a special bargain price. It was felt that at least $10,800 would normally have had to be paid to acquire this equipment. 31 During 2023, the company incurred a loss of $96,000. The Income Summary account was closed. 2024 Jan. Dec. 2825 Dec. 4 Issued 5,000 preferred shares at $72 per share. 31 The Income Summary account was closed. Profit for 2024 was $216,000. 4 The company declared a cash dividend of $0.12 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, 2025, was $192,000. The Income Summary account was closed. Required: 1. Journalize the transactions for the years 2023, 2024, and 2025. The company does not use a cash dividends account

Oriole Inc. (OI) is a backyard pond design and installation company. Ol was incorporated during 2023, with an unlimited number of common shares, and 42,000 preferred shares with a $3 dividend rate authorized. Ol follows ASPE. The following transactions took place during the first year of operations with respect to these shares: Jan. 1 Jan. 15 Feb. 20 Mar. 3 May 10 Sept. 23 Nov. 28 Dec. 31 The articles of incorporation were filed and state that an unlimited number of common shares and 42,000 preferred shares are authorized. Dec. 31 25,200 common shares were sold by subscription to 3 individuals, who each purchased 8,400 shares for $42 per share. The terms require 8% of the balance to be paid in cash immediately. The balance was to be paid by December 31, 2024, at which time the shares will be issued. 58,800 common shares were sold by subscription to 7 individuals, who each purchased 8,400 shares for $42 per share. The terms require that 8% of the balance be paid in cash immediately,…

On January 5, 2020, Bramble Corporation received a charter granting the right to issue 4,600 shares of $100 par value, 8% cumulative and nonparticipating preferred stock, and 49,800 shares of $10 par value common stock. It then completed these transactions. Jan. 11   Issued 19,300 shares of common stock at $16 per share. Feb. 1   Issued to Sanchez Corp. 3,600 shares of preferred stock for the following assets: equipment with a fair value of $50,600; a factory building with a fair value of $153,000; and land with an appraised value of $290,000. July 29   Purchased 2,000 shares of common stock at $19 per share. (Use cost method.) Aug. 10   Sold the 2,000 treasury shares at $15 per share. Dec. 31   Declared a $0.45 per share cash dividend on the common stock and declared the preferred dividend. Dec. 31   Closed the Income Summary account. There was a $162,500 net income.       Record the journal entries for the transactions listed above. (Credit account…

On June 1, 2023, Novak Company and Splish Company merged to form Blossom Inc. A total of 877,000 shares were issued to complete the merger. The new corporation reports on a calendar-year basis. On April 1, 2025, the company issued an additional 652,000 shares of stock for cash. All 1,529,000 shares were outstanding on December 31, 2025. Blossom Inc. also issued $600,000 of 20-year, 8% convertible bonds at par on July 1, 2025. Each $1,000 bond converts to 44 shares of common at any interest date. None of the bonds have been converted to date. Blossom Inc. is preparing its annual report for the fiscal year ending December 31, 2025. The annual report will show earnings per share figures based upon a reported after-tax net income of $1,444,000. (The tax rate is 20%.) Determine the following for 2025. a. The number of shares to be used for calculating: (Round answers to O decimal places, e.g. 2,500.) 1. 2. 1. Basic earnings per share 2. Diluted earnings per share Basic earnings per share b.…