Maria Martinez organized Manhattan Transport Company in January 2015. The corporation immediately issued at $8 per share one- half of its 200,000 authorized shares of $2 par value common stock. On January 2, 2016, the corporation sold at par value the entire 5,000 authorized shares of 8 percent, $100 par value cumulative preferred stock. On January 2, 2017, the company again needed capital and issued 5,000 shares of an authorized 10,000 shares of no-par cumulative preferred stock for a total of $512,000. The no- par shares have a stated dividend of $9 per share. The company declared no dividends in 2015 and 2016. At the end of 2016, its retained earnings were $170,000. During 2017 and 2018 combined, the company earned a total of $890,000. Dividends of 50 cents per share in 2017 and $1.60 per share in 2018 were paid on the common stock. Required: Prepare the stockholders' equity section of the balance sheet at December 31, 2018. Include a supporting schedule showing your computation of retained earnings at the balance sheet date. (Hint: Income increases retained earnings, whereas dividends decrease retained earnings.)

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