Required information Problem 10-5B Understand stockholders' equity and the statement of stockholders' equity (LO10-7) [The following information applies to the questions displayed below.] Nautical has two classes of stock authorized: $10 par preferred, and $1 par value common. As of the beginning of 2021 , 150 shares of preferred stock and 1,900 shares of common stock have been issued. The following transactions affect stockholders' equity during 2021: March 1 Issue 1,980 additional shares of connon stock for $16 per share. Aprit 1 Issue 15 additionat shares of preferred stock for $29 per share. June 1 beclare a cash dividend on both common and preferred stock of $9.55 per share to all stockholders of record on june 15 . June30 Pay the cash dividends declared on June 1. August 1 Purchase 250 shares of cotton treasury stock for $13 per share. 0ctober 1 Resell 150 shares of treasury stock purchased on August 1 for $15 per share. Nautical has the following beginning balances in its stockholders' equity accounts on January 1, 2021: Preferred Stock, \$1,500; Common Stock, \$1,900; Additional Paid-ln Capital, \$18,400; and Retained Earnings, \$10,400. Net income for the year ended December 31,2021 , is $7,100. Taking into consideraton the beginning balances on January 1,2021 and all the transactions during 2021, respond to the following for Nautical: Problem 10-5B Part 1 Required: 1. Prepare the stockholders' equity section of the balance sheet as of December 31, 2021, (Amounts to be deducted should be indicated by a minus sign.) 2. Prepare the statement of stockholders' equity for the year ended December 31, 2021. (Amounts to be deducted should be indicated by a minus sign.)