Exercise 10-7B Prepare the stockholders' equity section (L010-7) A company has two classes of stock authorized: 7%, $10 par preferred, and $1 par value common. The following transactions affect stockholders' equity during Year 1, its first year of operations: January 2 Issues 100,000 shares of common stock for $27 per share. February 6 Issues 2,200 shares of 7% preferred stock for $13 per share. September 10 Purchases 12,000 shares of its own common stock for $32 per share. December 15 Resells 6,000 shares of treasury stock at $37 per share. In its first year of operations, the company has net income of $152,000 and pays dividends at the end of the year of $94,000 ($1 per share) on all common shares outstanding and $1,540 on all preferred shares outstanding. Required: Prepare the stockholders' equity section of the balance sheet for the company as of December 31, Year 1. (Amounts to be deducted should be indicated by a minus sign.) Balance Sheet tes (Stockholders' Equity Section) December 31, Year 1 Stockholders' equity: Common stock $ Preferred stock 100,000 22,000 Additional paid-in capital 122,000 Total paid-in capital Retained earnings Treasury stock 56,460 Total stockholders' equity $ $ 178,460