II. Stockholders' equity (25 points). On January 1, 2021, Covid, Inc. had the following account balances in its shareholders' equity accounts. Common stock, $10 par, 25,000 shares issued $ 250,000 Paid-in capital-excess of par, common 500,000 Paid-in capital-excess of par, preferred 100,000 5% Preferred stock, $100 par, 10,000 shares 1,000,000 outstanding Retained earnings 2,000,000 Treasury stock, at cost, 500 shares 25,000 During 2021, Covid Inc. had several transactions relating to common stock. April 10: A 2-for-1 stock split was declared and distributed on outstanding common stock and effected in the form of a stock dividend. The market value of the stock was $50 on this date. July 18: Declared and distributed a 3% stock dividend on outstanding common stock. The market value is $40 per share. December 1: Declared a 50 cents per share cash dividend on the outstanding common shares. December 20: Paid the cash dividend. Below, and/or on the following page, without preparing journal entries, prepare the shareholders' equity section of Covid's balance sheet in good form as of December 31, 2021. Assume net income is $500,000 for 2021. II. Stockholders' equity (25 points). On January 1, 2021, Covid, Inc. had the following account balances in its shareholders' equity accounts. Common stock, $10 par, 25,000 shares issued $ 250,000 Paid-in capital-excess of par, common 500,000 Paid-in capital-excess of par, preferred 100,000 5% Preferred stock, $100 par, 10,000 shares 1,000,000 outstanding Retained earnings 2,000,000 Treasury stock, at cost, 500 shares 25,000 During 2021, Covid Inc. had several transactions relating to common stock. April 10: A 2-for-1 stock split was declared and distributed on outstanding common stock and effected in the form of a stock dividend. The market value of the stock was $50 on this date. July 18: Declared and distributed a 3% stock dividend on outstanding common stock. The market value is $40 per share. December 1: Declared a 50 cents per share cash dividend on the outstanding common shares. December 20: Paid the cash dividend. Below, and/or on the following page, without preparing journal entries, prepare the shareholders' equity section of Covid's balance sheet in good form as of December 31, 2021. Assume net income is $500,000 for 2021