Ferbs Company was formed on July 1, 2018. It was authorized to issue 300,000 shares of $10 par value common stock and 100,000 shares of 8% $25 par value, cumulative preferred stock. Ferbs Company has a July 1-June 30 fiscal year.

The following information relates to the stockholders' equity accounts of Ferbs Company.

Common stock

Prior to the 2020-2021 fiscal year, Ferbs had 110,000 shares of outstanding common stock issued as follows:

1.85,000 shares were issued for cash on July 1, 2018, at $31 per share.

2.On July 24, 2018, 5,000 shares were exchanged for a plot of land which cost the seller $70,000 in 2012 and had a fair value of $220,000 on July 24, 2018.

3.20,000 shares were issued on March 1, 2019, for $42 per share.

During the 2020-2021 fiscal year, the following transactions regarding common stock took place.

November 30, 2020Ferbs purchased 2,000 of its own stock on the open market at $39 per share. Ferbs used the treasury stock method.

December 15, 2020Ferbs declared a % stock dividend for stockholders of record on January 15, 2021, to be issued on January 31, 2021. Ferb's common stock was selling at $52 per share on that day.

June 20, 2021Ferbs sold 500 shares of its own stock that it had purchased on 11/30/2020 for $21,000.

Preferred stock

Ferbs issued 40,000 shares of preferred stock at $44 per share on July 1, 2019.

Cash dividends

Ferbs has followed a schedule of declaring cash dividends in December and June, with payment being made to stockholders of record in the following month. The cash dividends which have been declared since inception of the company through June 30, 2021, are shown below:

Declaration Date

Common Stock

Preferred Stock

12/15/19

$0.30 per share

$1.00 per share

6/15/20

$0.30 per share

$1.00 per share

12/15/20

-

$1.00 per share

No cash dividends were declared during June 2021 due to the company's liquidity problems.

Retained Earnings

As of June 30,2020, Ferb's retained earnings account had a balance of $690,000. For the fiscal year ending June 30,2021, Ferbs reported net income of $40,000.

Required:

Prepare the stockholders' equity section of the balance sheet for Ferbs' company as of June 30,2021.