Shown below is the stockholders equity section of Powells balance sheet at December 31, 2009:

Stockholders equity:

Common stock, $2 par value, 500,000 shares authorized,

?? shares issued$500,000

Additional paid-in capital common stock$1,750,000

Total paid in capital$2,250,000

Retained earnings.2,400,000

Total stockholders equity.$4650,000

In 2010, the following events occurred:

Powell issued 2,500 shares of $2 par common stock as payment for legal services. Although Powells stock is not traded on any exchange, the agreed-upon value of the legal services is $80,000.

Powell issued 4,500 shares of 6% cumulative preferred stock, $100 par value, for $106 per share.

The board of directors declared a dividend of $1.25 per share on the common stock. Powells net income for 2007 was $675,000.

Instructions

Complete in good form the stockholders equity section of a balance sheet prepared for Powell at December 31, 2010

1. Stockholders equity: 6% cumulative preferred stock, $100 par value, 10,000 shares authorized, 4,500 shares issued
2. Total paidin capital
3. Total stockholders equity