Shelby Corporation was organized in January 2010 by 10 stockholders to operate an air conditioning sales and service business. The…

Shelby Corporation was organized in January 2010 by 10 stockholders to operate an air conditioning sales and service business. The charter issued by the state authorized the following capital stock: Common stock, $5 par value, 173,000 shares. Preferred stock, $14 par value, 8 percent, 41,000 shares. During January and February 2010, the following stock transactions were completed: a. Collected $398,000 cash from each of the 10 organizers and issued 2,500 shares of common stock to each of them. b. Issued 13,500 shares of preferred stock at $25 per share; collected in cash. Net income for 2010 was $37,500; cash dividends declared and paid at year-end were $14,200. Prepare the stockholders’ equity section of the balance sheet at December 31, 2010