Stellar Company was formed on July 1, 2015. It was authorized to issue 303,800 shares of $10 par value common stock and 98,500 shares of 8% $25 par value, cumulative and nonparticipating preferred stock. Stellar Company has a July 1June 30 fiscal year.

The following information relates to the stockholders equity accounts of Stellar Company.

Common Stock

Prior to the 20172018 fiscal year, Stellar Company had 108,200 shares of outstanding common stock issued as follows.

1. 86,700 shares were issued for cash on July 1, 2015, at $34 per share.

2. On July 24, 2015, 5,000 shares were exchanged for a plot of land which cost the seller $67,800 in 2009 and had an estimated fair value of $215,600 on July 24, 2015.

3. 16,500 shares were issued on March 1, 2016, for $46 per share.

During the 20172018 fiscal year, the following transactions regarding common stock took place.

November 30, 2017 Stellar purchased 1,800 shares of its own stock on the open market at $37 per share. Stellar uses the cost method for treasury stock.

December 15, 2017 Stellar declared a 5% stock dividend for stockholders of record on January 15, 2018, to be issued on January 31, 2018. Stellar was having a liquidity problem and could not afford a cash dividend at the time. Stellars common stock was selling at $57 per share on December 15, 2017.

June 20, 2018 Stellar sold 550 shares of its own common stock that it had purchased on November 30, 2017, for $22,700.

Preferred Stock

Stellar issued 36,600 shares of preferred stock at $48 per share on July 1, 2016.

Cash Dividends

Stellar has followed a schedule of declaring cash dividends in December and June, with payment being made to stockholders of record in the following month. The cash dividends which have been declared since inception of the company through June 30, 2018, are shown below.

Declaration Date Common Stock Preferred Stock

12/15/16 $0.30 per share $1 per share

6/15/17 $0.30 per share $1 per share

12/15/17 $1 per share

No cash dividends were declared during June 2018 due to the companys liquidity problems.

Retained Earnings

As of June 30, 2017, Stellars retained earnings account had a balance of $669,500. For the fiscal year ending June 30, 2018, Stellar reported net income of $39,800.

Prepare the stockholders equity section of the balance sheet, for Stellar Company as of June 30, 2018, as it should appear in its annual report to the shareholders. (Enter account name only and do not provide descriptive information.)