Frank Wolfenship has incorporated his food service business

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 stock holders were paid their 5 percent dividend for the first year. Required: Prepare the Owners' Equity section of the firm's balance sheet. Refer to Exhibit 5 for specific language