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Major League Apparel has two classes of stock authorized: 4%, $10 par preferred, and $1 par value common. The following transactions affect stockholders' equity during 2021, its first year of operations: January 2 Issue 120,000 shares of common stock for $68 per share. February 14 Issue 58,000 shares of preferred stock for $13 per share. May 8Purchase 12,000 shares of its own common stock for $58 per share. May 31 Resell 6,000 shares of treasury stock for $63 per share. December 1 Declare a cash dividend on its common stock of $0.35 per share and a $23,200 (41 of par value) cash dividend on its preferred stock payable to all stockholders of record on December 15. The dividend is payable on December 30. (Hint: Dividends are not paid on treasury stock.) December 30 pay the cash dividends declared on December 1. 2. Prepare the stockholders' equity section of the balance sheet as of December 31, 2021. Net income for the year was $488,000, (Amounts to be deducted should be indicated by a minus sign.) 2. Prepare the stockholders' equity section of the balance sheet as of December 31, 2021. Net Income for the year was $488,000. (Amounts to be deducted should be indicated by a minus sign.) Answer is complete but not entirely correct. MAJOR LEAGUE APPAREL Balance Sheet (Stockholders' Equity Section) December 31, 2021 Stockholders'Equity: Preferred Stock $ 430,000 Common Stock 120,000 Additional Paid-in Capital 6,399,000 0 Total Paid-in Capital Retained Eamings Treasury Stock 6,949,000 410,200 (258,000) Total Stockholders' Equity $ 7,101,200