1. On January 1, 2021, 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.

5. Profit for 2021 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, 2021.