E11-3 (Algo) Determining the Effects of the Issuance of Common and Preferred Stock LO11-1, 11-3, 11-7, 118 Lucas Company was issued a charter by the state of Indiana on January 15 of this year. The charter authorized the following: Common stock, $7 par value, 117,000 shares authorized Preferred stock, 12 percent, par value $7 per share, 4,900 shares authorized During the year, the following transactions took place in the order presented: a. Sold and issued 22,000 shares of common stock at $14 cash per share. b. Sold and issued 1,100 shares of preferred stock at $18 cash per share. c. At the end of the year, the company reported net income of $41,300. No dividends were declared. Required: 1. Prepare the stockholders' equity section of the balance sheet at the end of the year. Required: 1. Prepare the stockholders' equity section of the balance sheet at the end of the year