Exercise 10-7B Prepare the stockholders' equity section (LO10-7) A company has two classes of stock authorized: 9%, $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 $19 per share. February 6 Issues 1,400 shares of 9 preferred stock for $11 per share. September 10 Purchases 11,000 shares of its own common stock for $24 per share. December 15 Resells 5,500 shares of treasury stock at $29 per share. In its first year of operations, the company has net income of $144,000 and pays dividends at the end of the year of $94,500 ($1 per share) on all common shares outstanding and $1,260 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 (Stockholders' Equity Section) December 31, Year 1 Stockholders' equity: Common stock Preferred stock $ 100,000 15,400 Additional paid-in capital Total paid-in capital 115,400 Retained eamings Treasury stock Total stockholders' equity $ 115,400 Check my work