Hammond Manufacturing Inc. was legally incorporated on January 2, 2020. Its articles of incorporation granted it the
Question:
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 $14.40 noncumulative preferred shares. The following transactions are among those that occurred during the first three years of operations:
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.
Step by Step Answer:
Fundamental Accounting Principles Volume II
ISBN: 978-1260305838
16th Canadian edition
Authors: Kermit Larson, Tilly Jensen, Heidi Dieckmann