Shelby Corporation was organized in January 2014 by ten shareholders to operate an air- conditioning sales and

Question:

Shelby was organized in January 2014 by ten shareholders to operate an air- conditioning sales and service business. The charter issued by the province authorized the following shares:
Common shares: no par value: 200,000 shares
Preferred shares: no par value: 6 percent: 50,000 shares
During January and February 2014, the following share transactions were completed:
a. Collected $40,000 cash from each of the ten organizers and issued 2,000 common shares to each of them.
b. Issued 15,000 preferred shares at $25 per share; collected in cash. Net income for 2014 was $40,000; cash dividends declared and paid at year-end were $10,000.
Required
Prepare the shareholders' equity section of the at December 31, 2014?
Balance Sheet
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