Maria Martinez organized Manhattan Transport Company in January 2018. The corporation immediately issued at $8 per share one-half of its 200,000 authorized shares of $2 par value common stock. On January 2, 2019, the corporation sold at par value the entire 5,000 authorized shares of 8 percent, $100 par value cumulative preferred stock. On January 2, 2020, the company again needed capital and issued 5,000 shares of an authorized 10,000 shares of no-par cumulative preferred stock for a total of $512,000. The no-par shares have a stated dividend of $9 per share.

The company declared no dividends in 2018 and 2019. At the end of 2019, its retained earnings were $170,000. During 2020 and 2021 combined, the company earned a total of $890,000. Dividends of 50 cents per share in 2020 and $1.60 per share in 2021 were paid on the common stock.

Required:

Prepare the stockholders equity section of the balance sheet at December 31, 2021.

MANHATTAN TRANSPORT COMPANY Partial Balance Sheet December 31, 2021 Stockholders' equity 8% cumulative preferred stock, $100 par value, 5,000 shares authorized , issued and outstanding Common stock, $2 par, 200,000 shares authorized, 100,000 shares issued and outstanding Additional paid-in capital: common stock $9 cumulative preferred stock, no-par value, 10,000 authorized, 5,000 shares, issued and outstanding $ 500,000 200,000 600,000 512,000 $ 1,812,000 $ 170,000 890,000 1,060,000 Total paid-in capital Retained earnings Retained earnings at Dec. 31, 2019 Add: Net income from 2020-2021 Net income for four-year period Less: Dividends paid on 8% preferred stock: Dividends 2019 Dividends 2020 Dividends 2021 Less: Dividends on 59 preferred stock: Dividends 2020 Dividends 2021 0 0 Less: Dividends on common stock: Dividends 2020 Dividends 2021 50,000 160,000 Retained earnings, December 31, 2021 Total stockholders' equity 210,000 850,000 $ 2,662,000