E11-4 Reporting the Stockholders Equity Section of the Balance Sheet [LO 11-2, LO 11-3, LO 11-4] Shelby Corporation was organized in January to operate an air-conditioning sales and service business. The charter issued by the state authorized the following capital stock: Common stock, $1 par value, 200,000 shares. Preferred stock, $10 par value, 6 percent, 50,000 shares. During January and February, the following stock transactions were completed: a. Collected $841,000 cash and issued 29,000 shares of common stock. b. Issued 19,500 shares of preferred stock at $39 per share; collected in cash. Net income for the year was $59,000; cash dividends declared and paid at year-end were $10,000. Required: Prepare the stockholders' equity section of the balance sheet at December 31. SHELBY CORPORATION Balance Sheet (Partial) At December 31 Stockholders' Equity Contributed Capital: Common Stock Preferred Stock Additional Paid-in Capital, Common Stock Additional Paid-in Capital, Preferred Stock $ 30,000 200,000 870,000 600,000 [ Total Contributed Capital 1,700,000 Total Stockholders' Equity 1,700,000