E11-5 Determining the Effects of the Issuance of Common and Preferred Stock [LO 11-2, LO 11-4] Inside Incorporated 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 operations in the order given: a. Issued 25,000 shares of the $6 par common stock at $23 cash per share. b. Issued 3,500 shares of preferred stock at $27 cash per share. c. At the end of the year, the accounts showed net income of $43,000. Required 1. Prepare the stockholders' equity section of the balance sheet at December 31. INSIDE INCORPORATED Balance Sheet (Partial) At December 31 Stockholders' Equity Contributed Capital: Total Contributed Capital 0 Total Stockholders' Equity