Shown below is the stockholders' equity section of Jones' balance sheet at December 31, Year 1....

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Shown below is the stockholders' equity section of Jones' balance sheet at December 31, Year 1. Stockholders' equity: Common stock, $5 par value, authorized 500,000 shares, $ issued 120,000 shares Additional paid-in capital Total paid-in capital 600,000 360,000 $ 960,000 750,000 $ Total stockholders' equity 1,710,000 Retained earnings During Year 2, the following events occurred: Jones issued 2,000 shares of $5 par value common stock in exchange for legal services; the value of these services was set at $19,500. Jones issued 8,000 of its 10,000 authorized shares of 8% cumulative preferred stock, $100 par value, for $108 per share. The board of directors declared and paid dividends of $8 per share to preferred stockholders and $0.50 per share to common stockholders. The company's net income is $450,000. Required: (A) Calculate the retained earnings balance at the end of Year 2. (B) Prepare in good form the stockholders' equity section of a balance sheet prepared for Jones at December 31, Year 2. Shown below is the stockholders' equity section of Jones' balance sheet at December 31, Year 1. Stockholders' equity: Common stock, $5 par value, authorized 500,000 shares, $ issued 120,000 shares Additional paid-in capital Total paid-in capital 600,000 360,000 $ 960,000 750,000 $ Total stockholders' equity 1,710,000 Retained earnings During Year 2, the following events occurred: Jones issued 2,000 shares of $5 par value common stock in exchange for legal services; the value of these services was set at $19,500. Jones issued 8,000 of its 10,000 authorized shares of 8% cumulative preferred stock, $100 par value, for $108 per share. The board of directors declared and paid dividends of $8 per share to preferred stockholders and $0.50 per share to common stockholders. The company's net income is $450,000. Required: (A) Calculate the retained earnings balance at the end of Year 2. (B) Prepare in good form the stockholders' equity section of a balance sheet prepared for Jones at December 31, Year 2.