Norwest Aviation received its charter during January 2017. The charter authorized the following shares:

Preferred shares: 8 percent; no-par value; authorized 20,000 shares
Common shares: no-par value; authorized 50,000 shares

During 2017, the following transactions occurred in the order given:

a. Issued a total of 40,000 common shares to the company’s founders for $11 per share

b. Issued 5,000 preferred shares at $18 per share

c. Issued 3,000 common shares at $14 per share and 1,000 preferred shares at $28

d. Net income for the first year was $48,000

Required:

Prepare the shareholders’ equity section of the balance sheet at December 31, 2017.