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Exercise 10-7B Prepare the stockholders' equity section (LO10-7) A company has two classes of stock...

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Exercise 10-7B Prepare the stockholders' equity section (LO10-7) 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 $24 per share. February 6 Issues 1,900 shares of 79 preferred stock for $13 per share. September 10 Purchases 12,000 shares of its own common stock for $29 per share. December 15 Resells 6,000 shares of treasury stock at $34 per share. In its first year of operations, the company has net income of $149,000 and pays dividends at the end of the year of $94,000 ($1 per share) on all common shares outstanding and $1,330 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.) Balance Shoot (Stockholders' Equity Section) December 31, Year 1 Stockholders' oqulty: Common stock $ Preferred stock Common stock Preferred stock Total paid-in capital Retained earnings Treasury stock 94,000 19,000 113,000 $ 113,000 Total stockholders' equity

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