Shelby Corporation was organized in January 2020 by ten shareholders to operate an air-conditioning sales and service business. The charter issued by the province authorized the following shares: Common shares: no-par value; 200,000 shares Preferred shares: no-par value; 6 percent; 50,000 shares During January and February 2020, the following share transactions were completed:

Collected $40,000 cash from each of the ten organizers and issued 2,000 common shares to each of them.

Issued 15,000 preferred shares at $25 per share; collected in cash.

Net income for 2020 was $40,000; cash dividends declared and paid at year-end were $10,000. Required: Prepare the shareholders equity section of the balance sheet at December 31, 2020.