Item10

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Item 10

In Draco Corporations first year of business, the following transactions affected its equity accounts.

• Issued 6,000 shares of $2 par value common stock for $38. It authorized 20,000 shares.
• Issued 1,500 shares of 12%, $10 par value preferred stock for $43. It authorized 3,000 shares.
• Reacquired 300 shares of common stock for $50 each.
• Retained earnings is impacted by reported net income of $70,000 and cash dividends of $25,000.

Prepare the stockholders equity section of Dracos balance sheet as of December 31.