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 $121,000 cash and issued 11,000 shares of common stock.
b.	Issued 10,500 shares of preferred stock at $21 per share; collected in cash.

Net income for the year was $41,000; cash dividends declared and paid at year-end were $11,000.

Required:

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

SHELBY CORPORATION
Balance Sheet (Partial)
At December 31
Stockholders Equity
Contributed Capital:
Total Contributed Capital
Total Stockholders Equity