A corporation was formed on January 1 and was authorized to issue 400,000 shares of common stock at $2 par value. During the first year of operations, the company earned $325,000 and the following transactions occurred:
- Sold 150,000 shares of common stock in an initial public offering of $15 per share
- Repurchased 35,000 shares of previously common stock at $20 to be held as treasury shares.
- Resold 5,000 of the treasury stock at $22 per share.
- Market price of the outstanding shares on December 31 was $25
Required:
Prepare the stockholders' equity section of the balance sheet at December 31 of the first year.