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: Collected $841,000 cash and issued 29,000 shares of common stock. 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.

Prepare the stockholders' equity section of the balance sheet at December 31 SHELBY CORPORATION Balance Sheet (Partial) At December 31 Stockholders' Equity Contributed Capital Preferred Stock Additional Paid-In Capital, Preferred Stock Additional Paid-In Capital, Preferred Stock Additional Paid-In Capital, Common Stock $ 195,000 565,500 29,000 812,000 Total Contributed Capital 1,601,500 59,000 (10,000) $ 1,650,500 vidends Total Stockholders' Equity