The following summaries for Centroplex Service, Inc., and JacobsCathey Co. provide the information needed to prepare the stockholders' equity section of each company's balance sheet. The two companies are independent.

- Centroplex Service, Inc. Centroplex is authorized to issue 40,000 shares of \(\$ 1\) par common stock. All the stock was issued at \(\$ 10\) per share. The company incurred net losses of \(\$ 50,000\) in 2004 and \(\$ 14,000\) in 2005. It earned net income of \(\$ 28,000\) in 2006 and \(\$ 176,000\) in 2007. The company declared no dividends during the four-year period.

- Jacobs-Cathey Co. Jacobs-Cathey's charter authorizes the issuance of 50,000 shares of \(5 \%, \$ 15\) par preferred stock and 500,000 shares of no-par common stock. Jacobs-Cathey issued 1,000 shares of the preferred stock at \(\$ 15\) per share. It issued 100,000 shares of the common stock for \(\$ 200,000\). The company's retained earnings balance at the beginning of 2007 was \(\$ 120,000\). Net income for 2007 was \(\$ 90,000\), and the company declared the specified preferred dividend for 2007. Preferred dividends for 2006 were in arrears.

Requirements 

For each company, prepare the stockholders' equity section of its balance sheet at December 31, 2007. Show the computation of all amounts. Entries are not required.