Davis Corporation completed the following transactions in Year XXX1, the first year of operation.

Issued 30,000 shares of $20 par common stock for $30 per share

Issued 5,000 shares of $50 par, 4 percent, preferred stock at $51 per share

Paid the annual cash dividend to preferred shareholders

Issued a 5 percent stock dividend on the common stock. The market value at the dividend declaration date was $40 per share

Later that year, issued a 2-for-1 split on the 31,500 shares of outstanding common stock.

Earned $195,000 of cash service revenues and paid $120,000 of cash operating expenses.

Required:

Prepare the stockholders equity section of the balance sheet for Davis Corporation at the end of the year (i.e. on December 31, Year XXX1).