Inside Incorporated was issued a charter on January 15 authorizing the following capital stock Common stock, $6 par, 100,000 shares, one vote per share. Preferred stock, 7 percent, par value $10 per share, 5,000 shares, nonvoting. The following selected transactions were completed during the first year of operations in the order given: a. Issued 20,000 shares of the $6 par common stock at $18 cash per share. b. Issued 3,000 shares of preferred stock at $22 cash per share. c. At the end of the year, the accounts showed net income of $38,000. No dividends were declared. Required: 1. Prepare the stockholders' equity section of the balance sheet at December 31. 2. Assume that you are a common stockholder of Inside Incorporated. If the company needed additional capital, would you prefer to have it issue additional common stock or additional preferred stock? Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required Required 1 2 Prepare the stockholders' equity section of the balance sheet at December 31. INSIDE INCORPORATED Balance Sheet (Partial) At December 31 Stockholders' Equity Contributed Capital: Preferred Stock $30,000 Additional Paid-In Capital, Preferred 51,000X Stock Common Stock 80,000X Additional Paid-In Capital, Common 340,000X Stock Total Contributed Capital 501,000 Retained Earnings 38,000 Total Stockholders' Equity $ 539,000 Required 1 Required 2 >