Major League Apparel has two classes of stock authorized: 5%, $10 par preferred, and $1 par value common. The following transactions affect stockholders' equity during 2021, its first year of operations: May January 2 Issue 100,000 shares of common stock for $52 per share February 14 Issue 42,000 shares of preferred stock for $11 per share 8 Purchase 10,000 shares of its own common stock for $42 per share, May 31 Resell 5,000 shares of treasury stock for $47 per share. December 1 Declare a cash dividend on its common stock of $0.35 per share and a $21,000 (5% of par value) cash dividend on its preferred stock payable to all stockholders of record on December 15. The dividend is payable on December 30. (Hint: Dividends are not paid on treasury stock) December 30 Pay the cash dividends declared on December 1. Problem 10-6A Part 2 2. Prepare the stockholders' equity section of the balance sheet as of December 31, 2021. Net income for the year was $472,000. (Amounts to be deducted should be indicated by a minus sign.) MAJOR LEAGUE APPAREL Balance Sheet (Stockholders'Equity Section) December 31, 2021 Stockholders' Equity Total Paidan Capital Total Stockholders Equity