Exercise 10-7A Prepare the stockholders' equity section (LO10-7) Finishing Touches has two classes of stock authorized: 7 %, $10 par preferred, and $1 par value common. The following transactions affect stockholders' equity during 2021, its first year of operations: January 2 Issues 100,000 shares of common stock for $21 per share. February 6 Issues 1,600 shares of 7 preferred stock for $13 per share. September 10 Purchases 12,000 shares of its own common stock for $26 per share. December 15 Resells 6,000 shares of treasury stock at $31 per share. In its first year of operations, Finishing Touches has net income of $146,000 and pays dividends at the end of the year of $94,000 ($1 per share) on all common shares outstanding and $1,120 on all preferred shares outstanding. Required: Prepare the stockholders' equity section of the balance sheet for Finishing Touches as of December 31, 2021. (Amounts to be deducted should be indicated by a minus sign.) FINISHING TOUCHES Balance Sheet December 31, 2021 (Stockholders' Equity Section) Stockholders' equity: Common stock Preferred stock $ 100,000 16,000 Additional paid-in capital Total paid-in capital Retained earnings 116,000 50,880 Treasury stock Total stockholders' equity $ 166,880