When Resisto Systems, Inc., was formed, the company was authorized to issue 5,000 shares of $100 par value, 8 percent cumulative preferred stock, and 100,000 shares of $2 stated value common stock.

Half of the preferred stock was issued at a price of $103 per share, and 70,000 shares of the common stock were sold for $13 per share. At the end of the current year, Resisto has retained earnings of $475,000.

a. Prepare the stockholders equity section of the companys balance sheet at the end of the current year.

b. Assume Resisto Systems common stock is trading $24 per share and its preferred stock is trading $107 per share at the end of the current year. With the stockholders equity section prepared in part a be affected by the additional information?