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

question 111

Essay

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.

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Definitions:

Hamburgers

They are a type of sandwich consisting of one or more cooked patties of ground meat, usually beef, placed inside a sliced bread roll or bun.

Producer Surplus II

Represents the difference between what producers are willing to accept for a good or service versus what they actually receive, indicating the benefit to producers.

Consumer Surplus

The difference in consumer's payment expectation versus their actual expenditure on a good or service.

Demand Curve

A graph representing the relationship between the price of a good and the amount consumers are willing and able to purchase at various prices.