Exercise 13-13 Preparing stockholders' equity section LO P1, C2, P3, C3 In Draco Corporation's first year of business, the following transactions affected its equity accounts. Issued 4,000 shares of $2 par value common stock for $18. It authorized 20,000 shares. Issued 1,000 shares of 12%, $10 par value preferred stock for $23. It authorized 3,000 shares. Reacquired 200 shares of common stock for $30 each Retained earnings is impacted by reported net income of $50,000 and cash dividends of $15,000. Prepare the stockholders' equity section of Draco's balance sheet as of December 31. (Amounts to be deducted should be indicated by a minus sign.) Answer is complete but not entirely correct. DRACO CORPORATION Stockholders'Equity Section of the Balance Sheet December 31 Preferred stock-$10 par value 10.000 Paid-in capital in excess of par value preferred stock 130.000 3 Common stock-$2 par value 8,000 Paid in capital in excess of par value, common stock 128,000 Retained earnings 35,000 Less: Cost of treasury stock 90.000 Total stockholders' equity 401 000