Calypso Yachts was issued a charter on January 15 authorizing the following capital stock: Common stock, $6 par, 100,000 shares, one vote per share. Preferred stock, 7 percent, par value $10 per share, 5,000 shares, nonvoting. The following selected transactions were completed during the first year of operations in the order given: a. Issued 25,000 shares of the $6 par common stock at $23 cash per share. b. Issued 3,500 shares of preferred stock at $27 cash per share. c. At the end of the year, the accounts showed net income of $53,000. No dividends were declared. Required: 1. Prepare the stockholders' equity section of the balance sheet at December 31 . 2. Assume that you are a common stockholder of Calypso Yachts. If the company needed additional capital, would you prefer to have it issue additional common stock or additional preferred stock? CALYPSO YACHTS Balance Sheet (Partial) At December 31 Stockholders' Equity Contributed Capital