The Struther's Corporation was organized on January $1,2003.$ It is authorized to issue $40,000$ shares of $$8,$ no par value cumulative preferred shares and $5,000,000$ common shares of no par value with a stated value of $$2$ per share. The following share transactions were completed during the first year:

Jan. $10$

Issued $90,000$ common shares for cash at $$4$ per share.

Mar. $1$

Issued $10,000$ preferred shares for cash at $$106$ per share.

Apr. $1$

Issued $20,000$ common shares for equipment. The asking price of the equipment was $$84,000$; the fair market value of the shares on this date was $$78,000.$

June $20$

Issued $90,000$ common shares for cash at $$5$ per share.

Aug. $1$

Issued $20,000$ common shares to lawyers in payment for their bill of $$84,000$ for services rendered in helping the company organize.

Sept. $1$

Issued $20,000$ common shares for cash at $$4\mathrm{.}50$ per share.

Nov. $1$

Issued $2,000$ preferred shares for cash at $$109$ per share.

Instructions

$($c$)$ Assuming that that net income for the year was $$316,000,$ prepare the shareholders' equity section of the balance sheet at December $31,2003.$