P15-A3 Preparation of stockholders' equity section (L.O. 3, 4, 5) Barney's corporate charter authorized the issuance of 100,000 shares of $100 par, 12%, cumulative, nonparticipating preferred stock and 1 million shares of no-par common. The board of directors has assigned a $5-per- share stated value to the common stock. Through December 31 of the current year, the firm has issued 25,000 of the preferred shares, generating $3 million cash. In addition, common shares were issued as follows: Five hundred thousand shares were sold to investors at $8 per share. Four hundred thousand shares were exchanged for buildings and equip- ment having a fair market value of $3.1 million and $450,000, respec- tively. Dividends on the preferred stock were $150,000 in arrears at the beginning of the current year. Dividend distributions in the past 12 months have amounted to $500,000. On December 17, Barney's finance department learned that one of the initial corporate investors had sold his entire holding of 3,900 common shares to Harold Lundgen for $22 per share. The investor originally paid $8 per share. Instructions Prepare Barney's stockholders' equity section as of December 31 of the current year along with any appropriate footnotes. Assume the Retained Earnings balance on this date totals $1,430,000