Exercise 10-7A Prepare the stockholders' equity section (LO10-7) Finishing Touches has two classes of stock authorized: 8%, $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 $31 per share. February 6 Issues 2,600 shares of 8 preferred stock for $12 per share. September 10 Purchases 10,000 shares of its own common stock for $36 per share. December 15 Resells 5,000 shares of treasury stock at $41 per share. In its first year of operations, Finishing Touches has net income of $156,000 and pays dividends at the end of the year of $95,000 ($1 per share) on all common shares outstanding and $2,080 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: Common stock $ Preferred stock Additional pald-in capital 100,000 26.000 Total pald-in capital Retained earnings Treasury stock 131,200 58,920 Total stockholders' equity $ 190,120