E15-17B (Stockholders’ Equity Section) Capital Northeast Corporation’s post-closing trial balance at December 31, 2014, was as follows.

E15-17B (Stockholders’ Equity Section) Capital Northeast Corporation’s post-closing trial balance at December 31, 2014, was as follows.

At December 31, 2014, Capital Northeast had the following number of common and preferred shares.

                            Common                         Preferred

Authorized          2,500,000                     1,000,000

Issued                    500,000                          65,000

Outstanding            490,000                         65,000

The dividends on preferred stock are 6% cumulative. In addition, the preferred stock has a preference in liquidation of $102 per share.

Instructions

Prepare the stockholders’ equity section of Capital Northeast’s balance sheet at December 31, 2014.

(AICPA adapted)