Exercise 10-7B Prepare the stockholders' equity section (LO10-7) A company has two classes of stock authorized7%, $10 par preferred, and $1 par value common. The following transactions affect stockholders' equity during Year 1. its first year of operations January 2s 100,000 shares of common stock for $21 per share, February 615 1,600 shares of 7% preferred stock for $13 per share. September 10 Purchases 12,000 shares of its own common stock for $26 per share December 15 Resells 6,000 shares of treasury stock at 531 per share. In its first year of operations, the company has net income of $146,000 and pays dividends at the end of the year or $94.000 (51 per share) on all common shares outstanding and $1120 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 Common stock Preferred stock Total paid-in capital Retained earnings Treasury stock 100.000 20 8001 120.800 Total stockholders' equity $ 120.800