Exercise 1-7A Prepare a statement of stockholders' equity (LO1-3) At the beginning of the year (January 1), Buffalo Drilling has $11,000 of common stock outstanding and retained earnings of $63 During the year, Buffalo reports net income of $6,600 and pays dividends of $1,300. In addition, Buffalo issues additional commc stock for $6,100 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 Total Stockholders Equity Retained Common Stock Earnings Beginning balance Issuance of common stock 11,000 6,100 6,100 6,600 6,600 Add: Net income 1,300 1,300 Less: Dividends 17,100 Ending balance