P11-2 (Algo) Preparing the Stockholders' Equity Section of the Balance Sheet LO11-1, 11-3, 11-7, 11-8 Witt Corporation received its charter during January of this year. The charter authorized the following stock: Preferred stock: 10 percent, $12 par value, 22,000 shares authorized Common stock: $10 par value, 51,700 shares authorized During the year, the following transactions occurred in the order given: a. Issued 38,700 shares of the common stock for $14 per share. b. Sold 5,600 shares of the preferred stock for $18 per share. c. Sold 4,600 shares of the common stock for $17 per share and 2,200 shares of the preferred stock for $28 per share. d. Net income for the year was $55,000. Required: Prepare the stockholders' equity section of the balance sheet at the end of the year. Stockholders' equity: Contributed capital: WITT CORPORATION Balance Sheet (Partial) At December 31, This Year Common stock Preferred stock Additional paid-in capital, common stock Additional paid-in capital, preferred stock Total contributed capital Retained earnings Total stockholders' equity 0 $ 0