Question - Tandy Company was issued a charter by the state of Indiana on January 15 of this year. The charter authorized the following:
Common stock, $8 par value, 106,000 shares authorized

Preferred stock, 7 percent, par value $8 per share, 5,700 shares authorized

During the year, the following transactions took place in the order presented:

a. Sold and issued 20,400 shares of common stock at $16 cash per share.

b. Sold and issued 1,600 shares of preferred stock at $20 cash per share.

c. At the end of the year, the accounts showed net income of $42,000. No dividends were declared.

Preparing the stockholders' equity section of the balance sheet at the end of the year.