QUESTION 1 The following is the stockholders equity section of Foley's balance sheet as of December 31, 2019, 5% Preferred stock, $50 par value, 20,000 shares authorized Noncumulative and nonparticipating, 6,000 shares issued and outstanding $ 300,000 Common stock $10 par value, 60,000 shares authorized 45,000 shares issued and outstanding 450,000 Pald.in capital in excess of par 110.000 Total paid-in capital 860,000 Retained earnings 440.000 Total stockholders equity $1.300.000 Instructions 1. Record the following transactions occurred in 2020 (10 points) a, January 5, 2,000 shares of preferred stock were issued to acquire a patent. The fair value of the potent was $130,000 b. February 20,7,000 shares of common were bought back as treasury shares at $22. c. August 154,000 shares of treasury stock that were bought on February 20 were sold out at $26. 2. In 2020, Foley reported net income of $200,000 and declared a total of $30,000 cash dividends. Incorporate the information as well as that in Instruction 1 to construct the stockholders' equity section of Foley's balance sheet as of December 31, 2020 (10 points)