The following account balances can be found in the general ledger of Zebra Enterprises at year end. Prepare the shareholders’ equity section of the balance sheet.

Retained earnings .........................$ 650,000

Treasury stock (10,000 common shares at cost) .............85,000

Common stock ($2 par, 500,000 shares authorized, 220,000 shares issued)..440,000

Additional paid-in capital, common stock ..............1,100,000

Preferred stock ($12 par value, 8%, 75,000 shares authorized,

25,000 shares issued)........................300,000

Additional paid-in capital, preferred stock ................50,000