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Required information Problem 10-58 Understand stockholders' equity and the statement of stockholders' equity (LO10-7) [The following information applies to the questions displayed below] Nautical has two classes of stock authorized: $10 par preferred, and $1 par value common. As of the beginning of 2021 , 125 shares of preferred stock and 1,100 shares of common stock have been issued. The foliowing transactions affect stockholders' equity during 2021 : March 1 Issue 1,100 additional shares of connon stock for 511 per share. April 1 Issue 175 additional shares of preferred stock for $21 per share. June 1 Declare a cash dividend on both comhon and preferred stock of $0.30 per shore to all stockholders of recard on June 15 . June3e pay the cash dividends declared on June 1. August 1 Purchase 175 shares of connon treasury stock for $8 per share. october 1 Resell. 125 shares of treasury stock purchased on August 1 for s10 per share. Nautical has the following beginning balances in its stockholders' equily accounts on January 1, 2021: Preferred Stock, \$1,250; Common Stock, \$1,100; Additional Paid-in Capital, \$17,600; and Retained Earnings, \$9,600. Net income for the year ended December 31, 2021, is $6,700 Taking into consideration the beginning balances on January 1,2021 and all the transactions during 2021, respond to the following for Nautical Required: 1. Prepare the stockholders' equity section of the balance sheet as of December 31, 2021. (Amounts to be deducted should be indicated by a minus sign.) 2. Prepare the statement of stockholders' equity for the year ended December 31, 2021. (Amounts to be deducted should be indicated by a minus sign.)

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