11-6 Financial Statements The stockholders' equity accounts of Windham Corporation at December 31, 20X1 (except at January 1, 20X1 for Retained Earnings) appear below: Paid-in Capital in Excess of Par Value-Preferred Stock. $116,000 Paid-in Capital from Sale of Treasury Stock 13,000 Treasury Stock (3,000 shares).. Common Stock, $10 Par Value, 200,000 shares authorized; 78,000 shares issued and 75,000 shares outstanding Common Stock Distributable 780,000 37,500 57,000 Donated Capital...... 120,000 10,000 shares issued and outstanding... 8% Preferred Stock, $25 Par Value, 50,000 shares authorized; Paid-in Capital in Excess of Par Value - Common Stock...... 448,500 250,000 Retained Earnings on January 1, 20X1 295,000 Additional Information: Net Income was $59,000 for this year. There was an error which resulted in an overstatement of prior year Net Income by $25,000 after tax. Stock Dividends were $90,000 Cash Dividends were $20,000 There were 75,000 shares of Common Stock outstanding during the entire year. The preferred stock as a liquidation value of $26.50 per share. Instructions: I. 2. Prepare the December 31, 20X1 Retained Earnings Statement. Prepare the December 31, 20X1, stockholders' equity section of the balance sheet. 1. Retained Earnings Statement