8 Preparing the Shareholders' Equity Section after Selected Transactions (P11-3) 3 The shareholders' equity accounts of Gennar Inc at Innumected Transactions (P11-3) e as follows March 10 Purchased a building for $3,000,000. The seller agreed to receive 20,000 preferred March10sharesand15,000commonsharesofGennarinexchangeforthebuilding.ThePurchasedabuildingfor$3,000,000.Theselleragreedto preferred shares were trading in the market at $50 per share on that day. July 1 Declared a semi-annual cash dividend of $1.00 per common share and the required amount of dividends on preferred shares, payable on August 1 , to shareholders of record on July 21 . The annual dividend of $2 per preferred share had not been paid in the previous two years. August 1 Paid the cash dividend declared on July 1 to both common and preferred shareholders. December 31 Determined that net earnings for the year were $385,000. Required: 1. Prepare journal entries to record the above transactions. 2. Prepare the shareholders' equity section of Gennar's statement of financial position as at December 31 , the end of the year