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: Collected $400,000 cash and issued 20,000 shares of common stock. Issued 15,000 shares of preferred stock at $30 per share; collected in cash. Net income for the year was $50,000; cash dividends declared and paid at year-end were $10,000. Required: Prepare the stockholders equity section of the balance sheet at December 31.