Teal Company was formed on July 1, 2018. It was authorized to issue 287,600 shares of $10 par value common stock and 104,500 shares of 8% $25 par value, cumulative and nonparticipating preferred stock. Teal Company has a July 1-June 30 fiscal year. The following information relates to the stockholders' equity accounts of Teal Company. Common Stock Prior to the 2020-2021 fiscal year, Teal Company had 114,200 shares of outstanding common stock issued as follows. 1. 2. 83,100 shares were issued for cash on July 1, 2018, at $32 per share. On July 24, 2018, 5,000 shares were exchanged for a plot of land which cost the seller $67,100 in 2012 and had an estimated fair value of $220,000 on July 24, 2018. 3. 26,100 shares were issued on March 1, 2019, for $40 per share. During the 2020-2021 fiscal year, the following transactions regarding common stock took place. November 30, 2020 Teal purchased 1,900 shares of its own stock on the open market at $41 per share. Teal uses the cost method for treasury stock. December 15, 2020 Teal declared a 5% stock dividend for stockholders of record on January 15, 2021, to be issued on January 31, 2021. Teal was having a liquidity problem and could not afford a cash dividend at the time. Teal's common stock was selling at $49 per share on December 15, 2020. June 20, 2021 Teal sold 470 shares of its own common stock that it had purchased on November 30, 2020, for $22,700. Preferred Stock Teal issued 38,200 shares of preferred stock at $43 per share on July 1, 2019. Cash Dividends Teal 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, 2021, are shown below. Declaration Common Stock Preferred Stock Date 12/15/19 6/15/20 12/15/20 $0.30 per share $1 per share $0.30 per share $1 per share $1 per share No cash dividends were declared during June 2021 due to the company's liquidity problems. Retained Earnings As of June 30, 2020, Teal's retained earnings account had a balance of $702,200. For the fiscal year ending June 30, 2021, Teal reported net income of $41,400.