of record on June 15. Nautical has two classes of stock authorized: $10 par preferred, and S1 par value common. As of the beginning of 2021, 125 shares of preferred stock and 2,400 shares of common stock have been issued. The following transactions affect stockholders' equity during 2021: March 1 Issue 2,400 additional shares of common stock for $19 per share. April 1 Issue 175 additional shares of preferred stock for $34 per share. June 1 Declare a canh dividend on both common and preferred stock of $0.70 por share to all stockholders June 30 Pay the cash dividends declared on June 1. August 1 Purchase 175 shares of common treasury stock for $16 per share. October 1 Revell 125 shares of treasury stock purchased on August 1 for $18 per share. Nautical has the following beginning balances in its stockholders' equity accounts on January 1, 2021: Preferred Stock, $1.250: Common Stock. $2,400; Additional Paid-in Capital , $18,900; and Retained Earnings, $10,900. Net income for the year ended December 31, 2021, is $7,350. Taking into consideration the beginning balances on January 1, 2021 and all the transactions during 2021, respond to the following for Nautical: Problem 10-5B Part 1 Required: 1. Prepare the stockholders' equity section of the balance sheet as of December 31, 2021. (Amounts to be deducted should be indicated by a minus sign.) NAUTICAL Balance Sheet (Stockholders' Equity Section) December 31, 2021 Stockholders' equity Preferred stock $ Common stock Padditional paid-in capital 3,000 4.800