i - X Reference Date Accounts and Explanation Debit Credit Jan. 1 60,000 Cash Common Stock-$1 Par Value Paid In Capital in Excess of ParCommon Issued common stock at par. 30,000 30,000 300,000 Jan. 10 Land Preferred Stock-$7 Par Value Paid In Capital in Excess of ParPreferred Issued preferred stock in exchange for land. 70,000 230,000 35,000 4,200 Dec. 15 Cash Dividends Dividends PayablePreferred Dividends PayableCommon Declared a cash dividend. 30,800 22,500 Dec. 20 Stock Dividends Common Stock Dividend Distributable Paid-In Capital in Excess of ParCommon Declared a 5% stock dividend. 7,500 15,000 4,200 30,800 Dec. 31 Dividends PayablePreferred Dividends PayableCommon Cash Payment of cash dividend. 35,000 7,500 Dec. 31 Common Stock Dividend Distributable Common Stock-$1 Par Value Issued 5% stock dividend. 7,500 Print Done Requirement 3. Prepare the stockholders' equity section of the balance sheet as of December 31, 2021. There was no preferred stock issued prior to the 2021 transactions Review the journal entries from Requirement 1. Nature Gnome Company Balance Sheet (Partial) December 31, 2021 Paid-In Capital: Total Paid-In Capital Total Stockholders' Equity shares at cost shares issued and outstanding Paid-In Capital: Common Stock-$1 Par Value; Paid In Capital in Excess of ParCommon Paid In Capital in Excess of Par-Preferred Preferred Stock6%, $7 Par Value; Retained Earnings