Shareholders' Equity

Herrera Manufacturing Corporation completed the following transactions during its first year of operation, 2019:

1. The state authorized the issuance of 30,000 shares of $5 par common stock; 15,000 shares were issued at $22 per share.
2. The state authorized the issuance of 6,000 shares of $50 par preferred stock. All 6,000 shares were issued at $70 per share.
3. Herrera reacquired 1,000 shares of its outstanding common stock at $18 per share. The cost method is used to account for treasury stock.
4. Herrera invested $50,000 of excess cash, not needed to finance operations, in long-term available-for-sale debt securities. At year-end, the market value of these securities was $47,500.
5. Herrera sold 500 shares of treasury stock for $23 per share.
6. Net income for the first year of operations was $16,000. No dividends were declared.

Required:

Prepare the shareholders' equity section of Herrera's balance sheet as of December 31, 2019.

HERRERA MANUFACTURING CORPORATION Shareholders' Equity Section December 31, 2019 Contributed Capital: Preferred stock, $50 par Common stock, $5 par Additional paid-in capital: On preferred stock On common stock From treasury stock 752,500 Total contributed capital Retained earnings Accumulated other comprehensive income (loss): Unrealized decrease in value of available-for-sale securities Total contributed capital, retained earnings, and accumulated other comprehensive income Less: Treasury stock at cost Total Shareholders' Equity 757,000