Problem 1 Stockholders Equity Transactions (20 points) Bainbridge Inc. is a newly formed corporation, authorized to issue 100,000 shares of $5 par value common stock and 10,000 shares of 6%$100 par cumulative non-participating preferred stock. Below are the transactions affecting stockholders equity for the year. Taking these transactions into account, prepare the Stockholders Equity section of Bainbridge's Balance Sheet as of December 31, 2016. (Hint - T accounts may help you with determining the various account balances, prior to preparing your Stockholder Equity Section.) \begin{tabular}{|c|l|} \hline Date & Transaction \\ \hline 1-Jan-16 & Issued 10,000 shares of common stock at $10 per share \\ \hline Feb. 10 & Issued 2,000 shares of preferred stock in exchange for Equipment with a fair value of $220,000 \\ \hline 1-Apr & Purchased 1,000 shares of its common stock (treasury stock) at $11 per share \\ \hline 10-Jul & Sold the 1,000 treasury shares at $14 per share \\ \hline 31-Dec & Closed the Income Summary Account - Net Income was $150,000 \\ \hline 31-Dec & Declared,a$1persharedividendonthecommonstock,anddeclaredthepreferreddividend.Thedividendshavenotbeenpaidyet. \\ \hline \end{tabular}