December 15, 2013 D'Ouville declared a 5% stock dividend for stockholders of record on January 15, 2014, to be issued on January 31, 2014. D'Ouville was having a liquidity problem and could not afford a cash dividend at the time. D'Ouville's common stock was selling at $52 per share on December 15, 2013. D'Ouville sold 500 shares of its own common stock that it had purchased on November 30, 2013, for $21,000. June 20, 2014 Preferred Stock: D'Ouville issued 100,000 shares of preferred stock at $44 per share on July 1, 2012. Cash Dividends: D'Ouville has followed a schedule of declaring cash dividends in December and June, with payment being made to stockholders of record in the following month. The cash dividends which have been declared since inception of the company through June 30, 2014, are shown below. Deciaration Common Stock Preferred Date Stock $0.30 per share $0.30 per share $0.50 per share $0.50 per share $0.50 per share 12/15/12 6/15/13 12/15/13 No cash dividends were dedared during June 2014 due to the company's liquidity problems. Retained Earnings: As of June 30, 2013, D'Ouville retained account had a balance of $550,000. For the fiscal year ending June 30, 2014, D'Ouville reported net income of $120,000. requirements: a) Prepare necessary journal entries for the above transactions. b) Prepare a shareholders'equity section on June 30, 2014 Question: 3 was formed on July 1, 2011. It was authorized to issue 500,000 shares of $10 par value common stock and 100,000 shares of 8%, $25 par value, cumulative and nonparticipating preferred stock D'Ouville Company has a July 1-June 30 fiscal year. The following information relates to the stockholders equity accounts of D'Ouville Company. Common Stock: Prior the 2013-2014 fiscal year, D'Ouville Company had 110,000 shares of outstanding common stock issued as follows. 1. 95,000 shares were issued for cash on Julv 1, 2011, at $31 P 2. On July 24, 2011,5,000 shares were exchanged for a plot of land which cost the seller $70,000 in 2005 and had an estimated fair value of $220,000 on July 24, 2011. 3. 10,000 shares were issued on March 1, 2013, for $42 per share. November 30, 2013 D'Ouville purchased 2,000 shares of its own stock on the open market at $39 share. D'Ouville the method for treasury stock. During the 2013-2014 fiscal year, the following transactions regarding common stock took place.