ts A company has two classes of stock authorized: 7%, $10 par preferred, and $1 par value common. The following transactions affect stockholders' equity during Year 1, its first year of operations. January 2 Issues 100,000 shares of common stock for $33 per share. February 6 Issues 2,800 shares of 7% preferred stock for $13 per share, September 10 Purchases 12,000 shares of its own common stock for $38 per share. December 15 Resells 6,000 shares of treasury stock at $43 per share. In its first year of operations, the company has net income of $158,000 and pays dividends at the end of the year of $94,000 ($1 per share) on all common shares outstanding and $1,960 on all preferred shares outstanding. Required: Prepare the stockholders' equity section of the balance sheet for the company as of December 31, Year 1. (Amounts to be deducted should be indicated by a minus sign.) Answer is complete but not entirely correct. Balance Sheet (Stockholders' Equity Section) December 31, Year 1 Stockholders' equity: Preferred stocki Common stock Additional paid-in capital Total paid in capital Retained earnings Treasury stock 5 28,000 100,000 3,414,000 000 00 3,542.000 62.040 (228,000) O Total stockholders' equity S 3,376,040