Covington Corporation, a publicly traded company, is authorized to issue 203,000 $4 noncumulative preferred shares and an unlimited number of common shares. On January 1, 2021, the general ledger contained the following shareholders' equity accounts: The following equity transactions occurred in 2021: Feb. 6 Issued 10,400 preferred shares for $613,600. Apr. 6 Issued 20,200 common shares for $555,500. 27 Repurchased and retired 3,300 common shares at \$16 per share. The balance in the Contributed Surplus account arose from the repurchase of common shares in prior years. May 29 Declared a semi-annual cash dividend to the preferred shareholders of record at June 12, payable July 1. Aug. 22 Issued 8,100 common shares in exchange for a building. At the time of the exchange, the building was valued at $178,100 and the common shares at $164,000. Dec. 14 The board of directors decided there were insufficient funds to declare the semi-annual dividend to the preferred shareholders. 31 Net income for the year was $545,000