Exercise $10-8($Algo$)$ Prepare the stockholders' equity section $($L$010-7)$

The Golden Mushroom has two classes of stock authorized: $8\%,$$$10$ par preferred, and $$1$ par value common. The following transactions affect stockholders' equity during $2024,$ its first year of operations:

January $2$ Issues $100,000$ shares of common stock for $$25$ per share.

February $6$ Issues $2,000$ shares of $8\%$ preferred stock for $$12$ per share.

September $10$ Purchases $10,000$ shares of its own common stock for $$30$ per share.

December $15$ Resells $5,000$ shares of treasury stock at $$35$ per share.

In its first year of operations, The Golden Mushroom has net income of $$150,000$ and pays dividends at the end of the year of $$95,000($$$1$ per share$)$ on all common shares outstanding and $$1,600$ on all preferred shares outstanding.

Required:

Prepare the stockholders' equity section of the balance sheet for The Golden Mushroom as of December $31,2024.($Amounts to be deducted should be indicated by a minus sign.$)$

Answer is complete but not entirely correct.

THE GOLDEN MUSHROOM

Balance Sheet

$($Stockholders$\text{'}$ Equity Section$)$

December $31,2024$

$\backslash$table$[[$Stockholders$\text{'}$ equity:,,$],[$Preferred stock,$,20,000\frac{O}{?}$