Prepare the general journal entries that are needed to record the transactions of Transformer Ltd. 1. Issued

Question:

Prepare the general journal entries that are needed to record the transactions of Transformer Ltd.

1. Issued 100000 shares for $200000.

2. The board of directors declared a cash dividend of 50c per share.

3. The cash dividend declared in (2) above was paid.

4. Close the Profit or Loss Summary account which has a credit balance of $23840.

Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...

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