E11-3 Preparing the Stockholders Equity Section of the Balance Sheet

North Wind Aviation received its charter during January 2013. The charter authorized the following capital stock:

Preferred stock: 8 percent, par $10, authorized 20,000 shares.

Common stock: par $1, authorized 50,000 shares.

During 2013, the following transactions occurred in the order given:

a. Issued a total of 40,000 shares of the common stock for $15 per share.

b. Issued 10,000 shares of the preferred stock at $16 per share.

c. Issued 3,000 of the common stock at $20 per share and 1,000 shares of the preferred stock at $16.

d. Net income for the first year was $48,000.

Required: Prepare the stockholders' equity section of the balance sheet at December 31, 2013.