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: During January and February, the following stock transactions were completed: a. Collected $225,000 cash and issued 15,000 shares of common stock. b. 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