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 $24 per share.
February		6		Issues 1,900 shares of 7% preferred stock for $13 per share.
September		10		Purchases 12,000 shares of its own common stock for $29 per share.
December		15		Resells 6,000 shares of treasury stock at $34 per share.

In its first year of operations, Finishing Touches has net income of $149,000 and pays dividends at the end of the year of $94,000 ($1 per share) on all common shares outstanding and $1,330 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 (Stockholders' Equity Section) December 31, 2021 Stockholders' equity: Preferred stock $ 100,000 Common stock Additional paid-in capital 100,000 Total paid-in capital Retained earnings Treasury stock Total stockholders' equity $ 100,000