Required information Problem 10-5A Understand stockholders' equity and the statement of stockholders' equity (LO10-7) The following information applies to the questions displayed below. Donnie Hilfiger has two classes of stock authorized: $1 par preferred and $0.01 par value common. As of the beginning of 2021, 300 shares of preferred stock and 4,000 shares of common stock have been issued. The following transactions affect stockholders' equity during 2021: March1 Issue 1,100 shares of common stock for $42 per share. May July October 15 Issue 200 shares of preferred stock for $45 per share. Decenber 1 Declare a cash dividend on both common and preferred stoek of S0.50 per share to all 15 Purchase 400 shares of treasury stock for $35 per share. 0 Resoll 200 shares of treasury stoek purehased on May 15 for $40 per share. stockholders of reoord on Decenber 15, (tints Dividenda are not paid on treasury stock.) December 31 Pay the cash dividends declared on December 1. Donnie Hilfiger has the following beginning balances in its stockholders' equity accounts on January 1, 2021: Preferred Stock, $300; Common Stock, $40; Additional Paid-in Capital, $76,000; and Retained Earnings, $30,500. Net Income for the year ended December 31, 2021, is $10,800. Taking into consiceration the beginning balances on January 1, 2021 and all the transactions during 2021, respond to the following for Donnie Hilfiger Required: 1. Prepare the stockholders' equity section of the balance sheet as of December 31, indicated by a minus sign.) &Answer is not complete. DONNIE HILFIGER Balance Sheet (Stockholders' Equity Section) December 31, 2021 Stockholders' Equity: Preferred Stock Common Stock Additional Paid-in Capital 500 Total Paid-in Capital Retained Earnings Treasury Stock 500 Total Stockholders' Equity 500 DONNIE HILFIGER Statement of Stockholders Equity For the Year Ended December 31, 2021 Total Retained Earnings Preferred Common Additional Paid-R Stock Stock in Capital Treasury Stock Stockholders Equity Balance, January 1 Issue Common Stock Purchase Treasury Stock Resell Treasury Stock Issue Preferred Stock Declare Cash Dividends Net Income Balance, December 31