Shelby Corporation was organized in January to operate an air$-$conditioning sales and service business. The charter issued by the state authorized the following capital stock:

Common stock, $$1$ par value, $200,000$ shares.

Preferred stock, $$10$ par value, $6$ percent, $50,000$ shares.

During January and February, the following stock transactions were completed:

a$.$ Collected $$729,000$ cash and issued $27,000$ shares of common stock.

b$.$ Issued $18,500$ shares of preferred stock at $$37$ per share; collected in cash.

Net income for the year was $$57,000$; cash dividends declared and paid at year$-$end were $$11,000.$

Required:

Prepare the stockholders' equity section of the balance sheet at December $31.$

$\backslash$table$[[$SHELBY CORPORATION$],[$Balance Sheet $($Partial$),],[$At December $31,],[$Stockholders$\text{'}$ Equity,$],[$Contributed Capital:,$],[$Preferred Stock,$],[$Common Stock,$],[$Additional Paid$-$In Capital, Common Stock,$],[$Total Contributed Capital,$],[$Retained Earnings,$]]$

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