Finishing Touches has two classes of stock authorized: 8%, $10 par preferred, and $1 par value common. The following transactions affect stockholders' equity during 2018, its first year of operations:

January 2 Issues 100,000 shares of common stock for $25 per share.

February 6 Issues 2,000 shares of 8% preferred stock for $12 per share.

September 10 Repurchases 10,000 shares of its own common stock for $30 per share.

December 15 Reissues 5,000 shares of treasury stock at $35 per share.

In its first year of operations, Finishing Touches has net income of $150,000 and pays dividends at the end of the year of $95,000 ($1 per share) on all common shares outstanding and $1,600 on all preferred shares outstanding.

Required:

Prepare the stockholders' equity section of the balance sheet for Finishing Touches as of December 31, 2018.

FINISHING TOUCHES
Balance Sheet
(Stockholders Equity Section)
December 31, 2018
Stockholders equity:
Common stock
Preferred stock
Additional paid-in capital
Total paid-in capital
Retained earnings
Treasury stock
Total stockholders equity