Sarah Co. has the following stockholders' equity for 12/31/2019: Preferred stock, 8%, $50 par, 8,000 shares authorized, 500 shares issued and outstanding 25,000 Common stock, $.20 par, 10,000 shares authorized, 7,000 shares issued, and 6,700 shares outstanding Total capital stock Additional paid-in capital: 1,400 26,400 Preferred 208,600 Common Total paid-in capital Retained earnings 235,000 280,000 Treasury Stock (300 shares at $25 cost) Total stockholders' equity (7,500) 507,500 Required: Record the transactions listed and prepare the 2020 stockholders' equity section of the balance sheet. The company reported NI of $90,000 for 2020. (a) Record the transactions listed. (2) Issued 300 shares of preferred stock for a patent. The stock was trading for $51 at the time of the exchange