Preparing the Stockholders’ Equity Section The following account balances, before any closing entries, appear on the books of Spring Company as of December 31, 2009:

Based on these account balances, and assuming net income for 2009 of $80,000, prepare the stockholders’ equity section of the December 31, 2009, balance sheet for Spring Company.

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Retained Earnings (balance at Jan. 1, 2009) Dividends, Preferred Stock Dividends, Common Stock $240,000 15,000 35,000 Common Stock ($5 par, 100,000 shares authorized, 70,000 issued and outstanding) 350,000 Paid-In Capital in Excess of Par, Common Stock 350,000 Preferred Stock (6%, $50 par, 50,000 shares authorized, 5,000 issued and outstanding) 250,000 Paid-In Capital in Excess of Par, Preferred Stock 25,000