Use the statement of shareholders€™ equity in Exhibit 10-6 to answer the following questions:

1. Make journal entries to record the declaration and payment of cash dividends during 2014.
2. How much cash did the issuance of preferred shares bring in during 2014?
3. What was the cost of the treasury shares that were purchased during 2014?

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Example Company Statement of Shareholders' Equity Year Ended December 31, 2014 Other Preferred Common Contributed Retained Comprehensive Shares Shares Surplus Total Earnings $450,000 Income $250,000$5,000,000 $15,000 $35,000 $5,750,000 5,000 100,000 (90,000) Balance, December 31, 2013 Increase in OCI Issue of Preferred Shares Purchase of Common Shares Stock Dividend Cash Dividend Preferred Common Balance, December 31, 2014 5,000 100,000 (75,000) 50,000 (15,000) (50,000) (25,000) 50,000 $325,000 (25,000) 50,000 $40,000 $5,690,000 $350,000 $4,975,000