Response to the following problem:
The following summaries for Yurman Jewelry, Inc., and Northern Insurance Company provide the information needed to prepare the stockholders' equity section of each company's balance sheet. The two companies are independent.
• Yurman Jewelry, Inc. Yurman Jewelry is authorized to issue 40,000 shares of $1 par common stock. All the stock was issued at $10 per share. The company incurred net losses of $50,000 in 20X1 and $14,000 in 20X2. It earned net income of $23,000 in 20X3 and $71,000 in 20X4. The company declared no dividends during the four-year period.
• Northern Insurance Company. Northern's charter authorizes the issuance of 50,000 shares of 7%, $15 par preferred stock and 500,000 shares of no-par common stock. Northern issued 1,000 shares of the preferred stock at $15 per share. It issued 100,000 shares of the common stock for $400,000. The company's retained earnings balance at the beginning of 20X4 was $120,000. Net income for 20X4 was $90,000, and the company declared the specified preferred dividend for 20X4. Preferred dividends for 20X3 were in arrears.
Required:
For each company, prepare the stockholders' equity section of its balance sheet at December 31, 20X4. Show the computation of all amounts. Entries are not required.