E11-5 (Algo) Determining the Effects of the Issuance of Common and Preferred Stock [LO 11-2, LO 11-4] Dornbusch Associates was issued a charter on January 15 authorizing the following capital stock: Common stock, $6 par, 100,000 shares, one vote per share. Preferred stock, 7 percent, par value $10 per share, 5,000 shares, nonvoting. The following selected transactions were completed during the first year of operotions in the order given: a. Issued 12,000 shares of the $6 par common stock at $15 cash per share. b. Issued 2,200 shares of preferred stock at $19 cash per share. c. At the end of the year, the accounts showed net income of $30,000 No dividends were declared. Required: 1. Prepare the stockholders' equity section of the balance sheet at December 31 . 2. Assume that you are a common stockholder of Dombusch Assoclates. If the company needed odditionot capital, would you prefer to have it issue additional common stock or additional preferred stock? Prepare the stockholders' equity section of the balance sheet at December 31 . to have it issue additional common stock or additional preferred stock? Complete this question by entering your answers in the tabs below. Assume that you are a common stockholder of Dornbusch Associates. If the compony needed additional capital, would you prefer to have it issue additional common stock or additional preferred stock