Prepare Stockholders Equity of the balance sheet.

Retained Earnings = $100,000

Preferred Stock ( $100 par, 7% Cumulitive, 10,000 authorized, 5,000 issued and outstanding) = $500,000

Treasury Stock = $35,000

Addditional Paid in Capital, common stock = 400,000

Additional Paid in Capital, preferred stock = 50,000

Common Stock ( $5.00 par value, 100,000 shares authorized, $60,000 issued) = $300,000