Novak Company was formed on July $1,2023.$ It was authorized to issue $292,500$ shares of $$10$ par value common stock and $102,300$ shares of $7\%,$ $$25$ par value, cumulative and nonparticipating preferred stock. Novak Company has a July $1-$June $30$ fiscal year. The following information relates to the stockholders equity accounts of Novak Company. Common Stock Prior to the $2025-2026$ fiscal year, Novak Company had $112,600$ shares of outstanding common stock issued as follows. $1.81,800$ shares were issued for cash on July $1,2023,$ at $$30$ per share. $2.$ On July $24,2023,5,000$ shares were exchanged for a plot of land which cost the seller $$71,000$ in $2017$ and had a fair value $($based on recent land sats$)$ of $$222,500$ on July $24,2023.3.25,800$ shares were issued on March $1,2024,$ for $$42$ per share. During the $2025-2026$ fiscal year, the following transactions regarding common stock took place. November $30,2025$ December $15,2025$ June $20,2026$ Novak purchased $1,800$ shares of its own stock on the open market at $$35$ per share. Novak uses the cost method for treasury stock. Novak declared a $5\%$ stock dividend for stockholders of record on January $15,2026,$ to be issued on January $31,2026.$ Novak was having a liquidity problem and could not afford a cash dividend at the time. Novak's common stock was selling at $$52$ per share on December $15,2025.$ Novak sold $520$ shares of its own common stock that it had purchased on November $30,2025,$ for $$21,900.$

Preferred Stock Novak issued $36,100$ shares of preferred stock at $$40$ per share on July $1,2024.$ Cash Dividends Novak has followed a schedule of declaring cash dividends in December and June, with payment being made to stockholders of record in the following month. The cash dividends which have been declared since inception of the company through June $30,2026,$ are shown below. Declaration Date Common Stock Preferred Stock $12/15/24$ $$0\mathrm{.}30$ per share $$1$ per share $6/15/25$ $$0\mathrm{.}30$ per share $$1$ per share $12/15/25$ $$1$ per share No cash dividends were declared during June $2026$ due to the company's liquidity problems. Retained Earnings As of June $30,2025,$ Novak's retained earnings account had a balance of $$678,700.$ For the fiscal year ending June $30,2026,$ Novak reported net income of $$40,500.$ Prepare the stockholders' equity section of the balance sheet, for Novak Company as of June $30,2026,$ as it should appear in its annual report to the shareholders.