Preparing the Stockholders Equity Section of the Balance Sheet

Witt Corporation received its charter during January 2014. The charter authorized the following capital stock:

Preferred stock: 10 percent, par $10, authorized 21,000 shares

Common stock: par $8, authorized 50,000 shares.

During 2014, the following transactions occurred in the order given:

a. Issued a total of 40,000 shares of the common stock to the four organizers at $12 per share.

b. Sold 5,500 shares of the preferred stock at $16 per share.

c. Sold 3,000 shares of the common stock at $15 per share and 1,000 shares of the preferred stock at $26.

d. Net income for the year was $96,000.

Required: Prepare the Stockholders' Equity section of the balance sheet at December 31, 2014.