Dorton Corp. has the following stockholders’ equity information: Dorton’s charter authorizes the company to issue 7,500 shares of 10% preferred stock with par value of $150 and 700,000 shares of no-par common stock. The company issued 1,950 shares of the preferred stock at $150 per share. It issued 171,600 shares of the common stock for a total of $643,000. The company’s retained earnings balance at the beginning of 2014 was $74,000, and net income for the year was $129,000. During 2014, Dorton declared the specified dividend on preferred and a $0.25 per-share dividend on common. Preferred dividends for 2013 were in arrears.
Prepare the stockholders’ equity section of Dorton Corp.’s balance sheet at December 31, 2014. Show the computation of all amounts. Journal entries are not required.