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Fly by Night Business Incorporated, received a charter authorizing the issue of 200,000,$6, cumulative, and fully participating preferred shares and an unlimited number of common

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Fly by Night Business Incorporated, received a charter authorizing the issue of 200,000,$6, cumulative, and fully participating preferred shares and an unlimited number of common shares. The following shareholders' equity transactions occurred in 2022 and 2023 : 2022 January 2 received subscriptions for 10,000 preferred shares @ $10 per share and collected 40% of the total proceeds. The balance will be collected one year from this date, at which time the shares will be issued. Jan 2 Sold 10,000 common shares at \$5 per share. Apr 1 Sold 2,000 common shares and 1,000 preferred shares for a lump sum of $20,000. The common shares were trading at $6 per share and a market value for the preferred shares could not be reliably determined. Oct 1 Issued 1,000 common shares in exchange for equipment. The equipment had an appraised value of $10,000 and the common shares had been trading at $12 per share. Dec 31 The company reported a net income of $250,000 and the shareholders declared dividends of $100,000 payable to the preferred and common shareholders on or before Feb. 10, 2023. (Set up two separate liability accounts and remember to close the Income Summary account). 2023 Jan 2 Collected the balance due re: the preferred share subscriptions. Feb 10 Paid the dividends declared on Dec. 31, 2022. Mar 31 Purchased and retired 500 preferred shares for $9 per share. May 1 Purchased and retired 1,000 common shares for $8 per share. Jul 30 Purchased and retired and additional 500 preferred shares for $12 per share. Dec 31 Operations were not quite as successful in 2023 and the company incurred a net loss of $1,000. (Close the Income Summary account). Required: Prepare the shareholders' equity section of the balance sheet as of Dec. 31, 2022. (I am looking for proper format. If the figures are incorrect, that is okay)

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