Prepare the Stockholders' Equity Section from Transaction Data

Prepare the stockholders' equity section from transaction data.
Shown below is the stockholders' equity section of Farrell Corporation's balance sheet at December 31, 2009:

In 2010, the following events occurred:
Farrell Corporation issued 1,000 shares of $3 par common stock in exchange for land. Although several real estate appraisers disagree on the value of the land, Farrell's stock is currently selling on a stock exchange for $32 per share.
Farrell Corporation issued 3,000 shares of 5% cumulative preferred stock, $100 par value, for $108 per share.
The board of directors declared a dividend of $1 per share on the common stock.
Farrell's net income for 2010 is $375,000.
Instructions: Complete in good form the stockholders' equity section of a balance sheet prepared for Farrell Corporation at December 31, 2010:

Correct Answer:

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