Answer Happy

Chan Corp. completed the following transactions in Year XXX1,the first year of operations: i) Issued 20,000 shares of $20 parcommon stock for $30 per share; ii) Issued 5,000 shares of $50 par,5 percent, preferred stock at $51 per share iii) Paid the annualcash dividend to preferred shareholders iv) Issued a 5 percentstock dividend on the common stock. The market value at thedividend declaration date was $40 per share v). Later that year,they issued a 2-for-1 split on the 21,000 shares of outstandingcommon stock. vi) Earned $210,000 of cash service revenues and paid$140,000 of cash operating expenses. Required: Prepare thestockholders’ equity section of the balance sheet for ChanCorporation at the end of the year (i.e., on December 31, YearXXX1).