Prepare the stockholders equity section of Chen Corporations balance sheet as of December 31, 2012. Use proper headings and provide full disclosure of all appropriate information. Chens corporate charter authorizes the issuance of 1,000 shares of preferred stock and 100,000 shares of common stock. Please also show the common dividend calculations.

2 STOCKEQ 3 Statement of Stockholder's Equity 4 5 Chen Corporation 6 Statement of Stockholders' Equity 7 For the Year Ended December 31, 2012 8 9 Preferred Common 10 Stock Stock Addi 11 $100 Par $2 Par Paid-in Retained Treasury 12 Value Value Capital Earnings Stock Total 13 Balance, 12/31/11 $10,000 $80,000 $54,000 $166,000 ($26,400) $283,600 14 Common stock issued 20,000 40,000 60,000 15 Treasury stock bought (4,800) (4,800) 16 Treasury stock sold 3,000 8,000 11,000 17 Net income 94,000 94,000 18 Dividends declared: 19 Preferred (800) (800) 20 Common (44,200) (44,200) 21 Balance, 12/31/12 $9,200 $55,800 $97,000 $260,000 ($23,200) $398,800 22