Tandy Company was issued a charter by the state of Indiana on January 15 of this year. The charter authorized the following:

Common stock, $7 par value, 104,000 shares authorized

Preferred stock, 15 percent, par value $15 per share, 5,800 shares authorized

During the year, the following transactions took place in the order presented:

a Sold and issued 21,100 shares of common stock at $30 cash per share.

b Sold and issued 2,000 shares of preferred stock at $34 cash per share.

c At the end of the year, the accounts showed net income of $40,900. No dividends were declared.

Required:

1. Prepare the stockholders equity section of the balance sheet at the end of the year.