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. $10 par value, 22,900 shares authorized Common stock: $8 par value, 50,800 shares authorized During the year, the following transactions occurred in the order given: 1. Issued 38,400 shares of the common stock for $12 per share. 2. Sold 7,000 shares of the preferred stock for $16 per share. c. Sold 4,000 shares of the common stock for $15 per share and 1,900 shares of the preferred stock for $26 per share. 1 Net Income for the year was $55,000. Required: Prepare the stockholders' equity section of the balance sheet at the end of the year. Answer is complete but not entirely correct. WITT CORPORATION Balance Sheet (Partial) At December 31, This Year Stockholders' equity: Contributed capital: Common stock Additional paid-in capital, common 96,800X stock Preferred stock 71,200 Additional paid-in capital, preferred 90,200% stock 424,000 Total contributed capital Retained earnings 682,200 55,000 Total stockholders' equity IS 737,200