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 $100,000 cash and issued 10,000 shares of common stock b. Issued 10,000 shares of preferred stock at $20 per share; collected in cash Net income for the year was $40,000; cash dividends declared and paid at year-end were $12,000 Required Prepare the stockholders' equity section of the balance sheet at December 31. SHELBY CORPORATION Balance Sheet (Partial) At December 31 Stockholders' Equity Contributed Capital Common Stock Additional Paid-In Capital, Common Stock380,000 Preferred Stock Additional Paid-In Capital, Preferred Stock300,000 $ 20,000 150,000 Total Contributed Capital Retained Earnings 850,000 40,000 Total Stockholders' Equity $ 890,000