On January 1, 2021, Hobbs Corporation had 60,000 common shares issued at $ 1 per share. During the year, the following transactions occurred:
Mar 1 Issued 40,000 common shares for $ 600,000.
Jun 1 Declared a cash dividend of $ 2 per share to shareholders of record on June 15.
Jun 30 Paid the $ 2 cash dividend.
Profit for 2021 amounted to $ 651,000.
Instructions
Prepare journal entries to record the above transactions including any appropriate closing entries.

Question

Quizplus · Accepted Answer

The Answer of On January 1, 2021, Hobbs Corporation had 60,000 common shares issued at $ 1 per share. During the year, the following transactions occurred:
Mar 1 Issued 40,000 common shares for $ 600,000.
Jun 1 Declared a cash dividend of $ 2 per share to shareholders of record on June 15.
Jun 30 Paid the $ 2 cash dividend.
Profit for 2021 amounted to $ 651,000.
Instructions
Prepare journal entries to record the above transactions including any appropriate closing entries.

On January 1, 2021, Hobbs Corporation Had 60,000 Common Shares