STOCKHOLDER’S EQUITY. On January 1, 19x1, Mulcahy Manufacturing, Inc., a newly formed corporation, issued 1,000 shares of capital stock in exchange for

$150,000 cash. No other shares were issued during 19x1, and no shares were repurchased by the corporation. On November 1, 19x1, the corporation’s major stockholder sold 300 shares to another stockholder for $60,000. The corporation reported net income of $22,300 for 19x1.

REQUIRED:

Prepare the stockholders’ equity section of the corporation’s balance sheet at December 31, 19x1, L-1