Frank Wolfenship has incorporated his food service business and sold stock to raise funds in the first year of operations as follows:

1. Sold 20,000 shares of common stock for $25 a share. The stock has a $1 par value. One hundred thousand shares have been authorized for sale.

2. Sold 10,000 shares of 5 percent cumulative preferred stock for $50 a share. The stock has a par value of $1 per share. Fifty thousand shares have been authorized for sale.

3. Operations for the first year resulted in net income of $200,000.

4. Preferred stockholders were paid their 5 percent dividend for the first year.

Prepare the owners equity section of the firms balance sheet.