Able Corporation had shareholders' equity on December $31,2006,$ as follows:

Preferred shares, $$3$ cumulative, unlimited shares authorized

Common shares, $1,000,000$ shares authorized,

$$0500,000$ issued and outstanding

Contributed capital from retirement of common shares

$3,500,000$

$4,000$

$3,000,000$

Retained earnings

The following transactions occurred during $2007$:

Feb $8$ Purchased and retired $2000$ common shares at $$10$ per share

$15$ The board of directors declared a $5\%$ share dividend to shareholders of record on March $1,$ payable March $20.$ The shares were selling for $$6$ per share

Mar $1$ Date of record regarding the $5\%$ share dividend

$20$ Date of distribution regarding the $5\%$ share dividend

Apr $5$ Issued $5,000$ preferred shares at $$20$ per share

May $1$ A $$20,000$ cash dividend was declared by the board of directors to Shareholders of record on May $20,$ payable June $1$

June $1$ The cash dividend declared on May $1$ was paid

Dec $31$ Closed the $$80,000$ credit balance in the Income Summary account

$31$ Closed the dividend accounts

Required

$($a$)$ Journalize the above transactions

$($b$)$ Prepare a statement of retained earnings for Dec $31,2006$

$($c$)$ Prepare the shareholders equity section of the balance sheet as of Dec $31,2006$