According to The Letters of JRR Tolkien, he wrote the greater part of The Hobbit during his first seven years as Professor of Anglo-Saxon at Oxford. A version was in existence by the winter of 1932, when it was read by C. S. Lewis.
The final version was sent to the publishers Allen & Unwin on 3 October 1936 for their consideration.
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The book covers about a one year period. It does not match the world as we know it. The Hobbit and the entire Middle Earth set of books is fiction and doesn't really fit into real history. It is supposedly long before the world known in our history.
The Hobbit begins on or around April 25, 2941. It ends on or around June 22, 2942.
Technically, in the very first chapter, called "An Unexpected Party." Although they only set out on their journey in the second chapter, called "Roast Mutton."
He wrote it in the early 1930's, though parts were written earlier. He shared parts with his children before it was finished.
Bilbo Baggins' Diary Entry Dear diary, Today, after having thirteen unexpected guests over at my house I was taken on an adventure. I was only just starting to realize how far this journey would be and how much respect I would lose from my community when we were faced with three nasty trolls. Their names were Bert, Tom and William. They were complete morons. They were also very hungry and thought the dwarves would be perfect for dinner. Thankfully, they had no interest in eating me. Just as the first of the dwarves was about to be cooked, Gandalf made his move. Like me he had noticed that the trolls were not very smart. So when they were not looking he sneaked into the bushes behind them. Then he started teasing them but did it in a way that made the trolls think it was them. Once they were confused and had started fighting with each other, I slipped on my invisibility ring and set the dwarves free. After that Gandalf turned the trolls into stone and we had a lovely dinner. Although it was delicious, it was not a good start to our quest.
When? At the beginning, Gandalf the Grey chats to Bilbo saying he is looking for someone to go on an adventure. Bilbo, being timid at the start, is a little rude to Gandalf, but invites him to afternoon tea. Gandalf laughs and with his staff marks the front door "burglar for hire, etc". Later a knock on the door and after a while 13 dwarfs and Gandalf are in Bilbo's Bag End residence: Dwalin, Balin, Fili, Kili, Gloin, Oin, Ori, Nori, Dori, Bifur, Bofur, Bombur, and Thorin Oakenshield. During the adventure Bilbo is separated numerous times from the dwarfs, and aids them in their escapades with his new found confidence and bravery and his magical ring.
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