Prepare the general journal entries that are needed to record the transactions of Transformer Ltd. Issued 100 000 shares for $200 000.

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

1. Issued 100 000 shares for $200 000.

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 $23 840.