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:

1. Collected $225,000 cash and issued 15,000 shares of common stock.
2. Issued 12,500 shares of preferred stock at $25 per share; collected in cash.

Net income for the year was $45,000; cash dividends declared and paid at year-end were $10,000.

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: Total Contributed Capital 0 Total Stockholders' Equity 0