On January 1, 2021, Urban Faith Limited had 200,000 common shares issued at an average cost of $ 25 per share. During the year, the following transactions occurred:
May 1 Issued 20,000 common shares for $ 470,000.
Jun 1 Declared a cash dividend of $ 3.50 per share to shareholders of record on June 15.
Jun 25 Issued 10,000 common shares for $ 260,000.
Jun 30 Paid the cash dividend declared on June 1.
Profit for 2021 amounted to $ 885,000.
Instructions
Prepare journal entries to record the above transactions assuming Urban Faith has a December 31 year end. Be sure to prepare the appropriate closing entries at December 31, 2021.

Question

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The Answer of On January 1, 2021, Urban Faith Limited had 200,000 common shares issued at an average cost of $ 25 per share. During the year, the following transactions occurred:
May 1 Issued 20,000 common shares for $ 470,000.
Jun 1 Declared a cash dividend of $ 3.50 per share to shareholders of record on June 15.
Jun 25 Issued 10,000 common shares for $ 260,000.
Jun 30 Paid the cash dividend declared on June 1.
Profit for 2021 amounted to $ 885,000.
Instructions
Prepare journal entries to record the above transactions assuming Urban Faith has a December 31 year end. Be sure to prepare the appropriate closing entries at December 31, 2021.

On January 1, 2021, Urban Faith Limited Had 200,000 Common