(Learning Objective 2, 4: Preparing the stockholders’ equity section of the balance sheet) The charter of Samuells’ Sportswear authorizes the company to issue 5,000 shares of 5%, $100 par preferred stock and 500,000 shares of no par common stock. Samuells’ issued 1,000 shares of the preferred stock at $100 per share. It issued 100,000 shares of the common stock for $427,000. The company’s retained earnings balance at the beginning of 20X6 was $61,000. Net income for 20X6 was $80,000, and the company declared a 5% cash dividend on preferred stock for 20X6.
Required
Prepare the stockholders’ equity section of Samuells’ Sportswear, Inc.’s, balance sheet at December 31, 20X6. Show the computation of all amounts. Journal entries are not required.