Chapter 11 Reporting and Interpreting Stockholders' Equity Exercise 11-3: Determining the Effects of the Issuance of Common and Preferred Stock Bovnton Corporation was issued a charter by the state of Illinois on January 15 of this vear. The charter authorized the following: Common stock, $211 par value, 205,000 shares Preferred stock, 9 percent. par value $16 per share, 3.0m} shares authorized During Year 1, the following selected transactions were completed in the order given: 3. Sold and issued 40.0% shares of common stock at $32 cash per share. b. Sold and issued 6,000 shares of preferred stock at $43 cash per share. c. At the end of Year 1 . the accounts showed net income of $30.03!). No dividends were declared. Required: Prepare the stockholders' annuityr section of the balance sheet at the end of the veer