Donnie Hilfiger has two classes of stock authorized: $1 par preferred and $0.01 par value common. As of the beginning of 2024, 100 shares of preferred stock and 3,200 shares of common stock have been issued. The following transactions affect stockholders equity during 2024:

March 1	Issue 1,200 shares of common stock for $34 per share.
May 15	Purchase 500 shares of treasury stock for $27 per share.
July 10	Resell 300 shares of treasury stock purchased on May 15 for $32 per share.
October 15	Issue 300 shares of preferred stock for $37 per share.
December 1	Declare a cash dividend on both common and preferred stock of $0.85 per share to all stockholders of record on December 15. (Hint: Dividends are not paid on treasury stock.)
December 31	Pay the cash dividends declared on December 1.

Donnie Hilfiger has the following beginning balances in its stockholders equity accounts on January 1, 2024: Preferred Stock, $100; Common Stock, $32; Additional Paid-in Capital, $68,000; and Retained Earnings, $26,500. Net income for the year ended December 31, 2024, is $10,000.

Taking into consideration the beginning balances on January 1, 2024 and all the transactions during 2024, respond to the following for Donnie Hilfiger:

Problem 10-5A (Algo) Part 1

Required:

1. Prepare the stockholders equity section of the balance sheet as of December 31, 2024

\begin{tabular}{|c|c|} \hline \multicolumn{2}{|c|}{ DONNIE HILFIGER } \\ \hline \multicolumn{2}{|c|}{ Balance Sheet } \\ \hline \multicolumn{2}{|c|}{ (Stockholders' Equity Section) } \\ \hline \multicolumn{2}{|c|}{ December 31, 2024} \\ \hline Stockholders' equity: & \\ \hline Preferred stock & \\ \hline & \\ \hline & \\ \hline Total paid-in capital & \\ \hline & $ \\ \hline & \\ \hline Total stockholders' equity & 0.... \\ \hline \end{tabular}