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 100,600 shares of common stock for $32 per share. February 6 Issues 2,780 shares of 94 preferred stock for $11 per share. September 10 Purchases 11,000 shares of its own common stock for $37 per share. December 15 Resells 5,500 shares of treasury stock at $42 per share. In its first year of operations, the company has net income of $157,000 and pays dividends at the end of the year of $94,500/$1 per share) on all common shares outstanding and $2,430 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.)