Exercise 1-7A Prepare a statement of stockholders' equity (L01-3) At the beginning of the year (January 1) Buffalo Drilling has $12,000 of common stock outstanding and retained earnings of $6,800 During the year. Buffalo reports net income of $7100 and pays dividends of $1,800. In addition, Buffalo Issues additional common stock for $6,600 Required: Prepare the statement of stockholders' equity at the end of the year (December 31). BUFFALO DRILLING Statement of Stockholders' Equity For the Year Ended December 31 Retained Common Stock Earnings Total Stockholders Equity Beginning balance Ending balance