Stockholders' Equity: Transactions and Balance Sheet Presentation Baker Corporation was organized on July 1 , with an authorization of 50,000 shares of $5 no-par value preferred stock ( $5 is the annual dividend) and 100,000 shares of $10 par value common stock. During July, the following transactions affecting stockholders' equity occurred: Required a. Prepare journal entries to record the foregoing transactions. b. Prepare the stockholders' equity section of the balance sheet at July 31 . The net income for July is $52,000