Problem 2 (20 points) The stockholder's equity section of Doc Corporation's balance as of January 1, 2019 is presented below: Paid-in Capital Preferred stock, 9%, $100 par value, non-cumulative, 10,000 shares authorized, 5,000 shares issued and outstanding... $ 500,000 Common stock, S10 par value, 500,000 shares Authorized, 90,000 shares issued and 90,000 shares outstanding.... 900,000 Paid in capital in excess of par- common stock.. 200.000 Total Paid-in Capital $ 1,600,000 Retained eamings... 900.000 Total Stockholder's Equity $ 2.500.000 The following transactions affecting stockholder's equity occurred during the year. Jan 15 Declared the annual cash dividend on the preferred stock, payable April 15. Declared a $2 per share cash dividend on the common stock outstanding payable April 15. Apr15 Paid the cash dividends declared on January 15 and March 1. May 1 Issued 10,000 shares of common stock for $20 per share. Oct 1 Declared and issued a 10% stock dividend on the common stock outstanding. The market value of the common stock was $25. Mar 1 Dec 31 Net Income for the year was $700,000. Closed the income summary account. Dec 31 Close the dividend accounts. Instructions: Prepare journal entries for the above. b. Post to the appropriate ledger accounts c. Prepare a stockholder equity section for December 31, 2019