Exercise 10-7B Prepare the stockholders' equity section (LO10-7)

A company has two classes of stock authorized: 8%, $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 $25 per share.
February		6		Issues 2,000 shares of 8% preferred stock for $12 per share.
September		10		Purchases 10,000 shares of its own common stock for $30 per share.
December		15		Resells 5,000 shares of treasury stock at $35 per share.

In its first year of operations, the company has net income of $150,000 and pays dividends at the end of the year of $95,000 ($1 per share) on all common shares outstanding and $1,600 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.)