ACCOUNTING I

Finishing Touches has two classes of stock authorized: 8%, $10 par preferred, and $1 par value common. The following transactions affect stockholders' equity during 2021, its first year of operations:

January 2 Issues 100,000 shares of common stock for $17 per share.

February 6 Issues 1,200 shares of 8% preferred stock for $12 per share.

September 10 Purchases 10,000 shares of its own common stock for $22 per share.

December 15 Resells 5,000 shares of treasury stock at $27 per share.

In its first year of operations, Finishing Touches has net income of $142,000 and pays dividends at the end of the year of $95,000 ($1 per share) on all common shares outstanding and $960 on all preferred shares outstanding. Required: Prepare the stockholders' equity section of the balance sheet for Finishing Touches as of December 31, 2021. (Amounts to be deducted should be indicated by a minus sign.)

Required:

Prepare the stockholders' equity section of the balance sheet for Finishing Touches as of December 31, 2021. (Amounts to be deducted should be indicated by a minus sign.)