Paul Company reported the following balances at December 31, 2013: common stock $400,000, stated value $5; paid-in capital in excess of par—common stock $220,000; and retained earnings $250,000 During 2014, the following transactions affected stockholder's equity. Issued preferred stock with a par value of $125 for $165,000. Purchased treasury stock (common) for $40,000 at cost. Earned net income of $140,000. Declared and paid cash dividends of $48,000. Instructions Prepare the journal enties for the 4 items above Prepare the stockholders' equity section of Paul Company's December 31, 2014, balance sheet.