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Exercise 10-7A Prepare the stockholders' equity section (LO10-7) Finishing Touches has two classes of stock authorized: 9%, $10 par preferred, and $1 par value common. The following transactions affect stockholders' equity during 2021, its first year of operations: January 2 Issues 100.000 shares of common stock for $19 per share. February 6 Issues 1,400 shares of 91 preferred stock for $11 per share. September 10 Purchases 11,000 shares of its own common stock for $24 per share. December 15 Resells 5,500 shares of treasury stock at $29 per share. In its first year of operations, Finishing Touches has net income of $144,000 and pays dividends at the end of the year of $94,500 ($1 per share) on all common shares outstanding and $1,260 on all preferred shares outstanding. Required: Prepare the stockholders' equity section of the balance sheet for Finishing Touches as of December 31, 2021. (Amounts to be deducted should be indicated by a minus sign.) FINISHING TOUCHES Balance Sheet (Stockholders' Equity Section) December 31, 2021 Stockholders' equity Preferred stock $ Common stock Additional paid in capital 14,000 100,000 114,000 Total paid-in capital Retained earnings Treasury stock Total stockholders' equity $ 114,000