Question 2 On December 31, 2021, Sandhill Co. had 1,385,000 shares of $7 par common stock issued and outstanding. At December 31, 2021, stockholders' equity had the amounts listed here. Common Stock Additional Paid-in Capital Retained Earnings $9,695,000 1,735,000 1,135,000 Transactions during 2022 and other information related to stockholders' equity accounts were as follows. 1. 2. 3. On January 10, issued at $113 per share 123,000 shares of $104 par value, 7% cumulative preferred stock. On February 8, reacquired 18,700 shares of its common stock for $11 per share. On May 9, declared the yearly cash dividend on preferred stock, payable June 10, to stockholders of record on May 31. On June 8, declared a cash dividend of $1.45 per share on the common stock outstanding, payable on July 10, to stockholders of record on July 1. Net income for 2022 was $3,515,000. 4. 5. Date Account Titles and Explanation Debit Credit (To close net income) (To close cash dividends) Prepare the stockholders' equity section of Sandhills' balance sheet at December 31, 2022. SANDHILL CO. Partial Balance Sheet $ $ $