Shelby Corporation was organized in January to operate an air-conditioning sales and service business. The charter issued by the state authorized the following capital stock:
Common stock, $1 par value, 200,000 shares.
Preferred stock, $10 par value, 6 percent, 50,000 shares.
During January and February, the following stock transactions were completed:
a. Collected $ 400,000 cash and issued 20,000 shares of common stock.
b. Issued 15,000 shares of preferred stock at $ 30 per share; collected in cash. Net income for the year was $ 50,000; cash dividends declared and paid at year-end were $ 10,000.
Required:
Prepare the stockholders’ equity section of the balance sheet at December 31.