Hex Corporation Showed the Following Amounts in the Equity Section

question 76

Essay

Hex Corporation showed the following amounts in the equity section of its balance sheet at January 1, 2021:
$\begin{array}{|l|r|}\hline \text { Preferred Shares, } \$ 2 \text { cumulative (in arrears for 2020), 10,000 shares issued } & \$ 500,000 \\\hline \text { Common shares } 40,000 \text { shares issued } & \$ 800,000 \\\hline \text { Retained Earnings } & \$ 500,000 \\\hline\end{array}$
In 2021: On Jan. 20, 2021, 10,000 common shares were issued for $150,000. On Nov. 1, 2021, Cash dividends of $90,000 were declared. Dividends will be paid on January 18, 2022. On Dec. 31, 2021 Hex reported revenues of $150,000 and expenses of $80,000 for the year.

-Prepare journal entries for 2021.Use an Income Summary account and Cash Dividends account as required

---

Definitions:

Objective Measures

Quantifiable assessments that minimize bias and subjectivity, often used in research and evaluation.

Unconscious Bias

Refers to the attitudes or stereotypes that affect our understanding, actions, and decisions in an unconscious manner.

Language Study

The academic discipline concerned with analyzing and understanding languages, including their structure, function, and evolution.

English

A West Germanic language that was first spoken in early medieval England and is now a global lingua franca.