Hammond Manufacturing Inc. was legally incorporated on January 2, 2014. 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:
Required 1. Journalize the transactions for the years 2014, 2015, and 2016. 2. Prepare the statement of changes in equity for the year ended December 31, 2016. 3. Prepare the equity section on the December 31, 2016, balance sheet. Analysis Component: Determine the net assets of Hammond Manufacturing Inc. for 2014, 2015, and 2016. Is the trend favourable or unfavorable?Explain.