Exercise 10-7B Prepare the stockholders' equity section (LO10-7) 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 $33 per share. February 6 Issues 2,800 shares of 7% preferred stock for 513 per share. September 10 Purchases 12,000 shares of its own common stock for $38 per share. December 15 Resells 6,000 shares of treasury stock at $43 per share. In its first year of operations, the company has net income of $158,000 and pays dividends at the end of the year of $94.000 ($1 per share) on all common shares outstanding and $1,960 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: Total paid in capital Total stockholders' equity