Preparing the Stockholders Equity Section of the Balance Sheet

P11-2 Preparing the Stockholders Equity Section of the Balance Sheet LO11-3, 11-7Witt Corporation received its charter during January 2014. The charter authorized the following capital stock:Preferred stock: 10 percent, par $10, authorized 21,000 sharesCommon stock: par $8, authorized 50,000 shares.During 2014, the following transactions occurred in the order given:a.b.c.d.Issued a total of 40,000 shares of the common stock to the four organizers at $12 per share.Sold 5,500 shares of the preferred stock at $16 per share.Sold 3,000 shares of the common stock at $15 per share and 1,000 shares of the preferred stock at $26.Net income for the year was $96,000.Required:Prepare the Stockholders’ Equity section of the balance sheet at December 31, 2014.Possible input areas are shaded.WITT CORPORATIONBalance Sheet (Partial)At December 31, 2014Stockholders’ equity:Contributed capital:Total contributed capitalTotal stockholders’ equity-$-ed stock at $26.639000