Question: On January 1, 2017, 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 2017 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, 2017.