Peeler Company was incorporated as a new business on January 1, 2008. The corporate charter approved on the date authorized the issuance of 1,000 shares of $100 par, 7% cumulative, non-participating preferred stock and 10,000 shares of $5 par common stock. On January 10, Peeler issued for cash 500 shares of preferred stock at $120 per share and 4,000 shares of common stock at $80 per share. On January 20, it issued 1,000 shares of common stock to acquire a building site at a time when the stock was selling for $70 per share.

During 2008, Peeler established an employee benefit plan and acquired 500 shares of common stock at $60 per share as treasury stock for that purpose. Later in 2008, it resold 100 shares of the stock at $65 per share.

On December 31, 2008, Peeler determined its net income for the year to be $40,000. The firm declared the annual cash dividend to preferred stockholders and cash dividend of $5 per share to the common stockholders. The dividends will be paid in 2009.

***Develop the Stockholders' Equity category of Peeler's balance sheet as of December 31, 2008. Indicate on the statement the number of shares authorized, issued, and outstanding for both preferred and common stock.

If you guys got the book ""Financial Accounting: The Impact On Decision Makers"" by Porter/Norton, this problem is in page 569 (Problem 11-1).