On December 31, 2020, shareholders' equity accounts of Green Products Inc. (GPI) had the balances shown below. GPI paid dividends of \(\$ 4,096\) on December 1, 2020.

1. GPI sold 10,000 common shares on June 30,2020 . What was the average selling price of these shares if this was the only common-shares transaction during 2020?
2. Journalize GPI's sale of the common shares on June 30, 2020.
3. Based only on the above information, did GPI earn a profit or suffer a loss during 2020 ? Calculate the profit or loss.

Transcribed Image Text:

Common shares..... Retained earnings Total shareholders' equity. 2020 82,968 2019 $ 64,968 80,435 $163,403 78,881 $143.849