In its first year of operations, Finishing Touches has net income of $142,000 and pays dividends at the end of the year of $95,000 ($1 per share) on all common shares outstanding and $960 on all preferred shares outstanding.

Required:

Prepare the stockholders' equity section of the balance sheet for Finishing Touches as of December 31, 2021. (Amounts to be deducted should be indicated by a minus sign.)

FINISHING TOUCHES Balance Sheet (Stockholders' Equity Section) December 31, 2021 Stockholders' equity: Common stock $ 100,000 Preferred stock 100,000 Additional paid-in capital Additional paid-in capital Total paid-in capital Retained earnings Additional paid-in capital Treasury stock Total stockholders' equity $ 100,000 FINISHING TOUCHES Balance Sheet (Stockholders' Equity Section) December 31, 2021 Stockholders' equity: Common stock $ 100,000 Preferred stock 100,000 Additional paid-in capital Additional paid-in capital Total paid-in capital Retained earnings Additional paid-in capital Treasury stock Total stockholders' equity $ 100,000