The following is a partial list of the accounts and ending account balances taken from the post-closing trial balance of the Clett Corporation on December 31, 2007:
Common stock subscribed $ 10,000
Long-term investments in preferred stock $ 90,000
Premium on bonds payable 50,000
Preferred stock 400,000
Preferred stock subscribed 100,000
Temporary investments in common stock 110,000
Retained earnings 610,000
Bonds payable 500,000
Premium on common stock 542,000
Common stock 150,000
Premium on preferred stock 76,000
Unrealized decrease in value of securities available for sale 6,000
1. Bonds payable mature on December 31, 2022. They carry a 12% interest rate, payable semiannually. The premium is being amortized using the straight-line method.
2. The 7.5% preferred stock is cumulative and convertible into three shares of common stock. It has a par value of $100 per share, 20,000 shares are authorized, 4,000 shares are issued and outstanding, 1,000 shares have been subscribed at $125 per share.
3. Common stock has a par value of $5 per share, 100,000 shares are authorized, 30,000 shares are issued and outstanding, 2,000 shares have been subscribed at $41 per share.
Prepare the contributed capital section of the December 31, 2007 balance sheet for the Clett Corporation. Include appropriate parenthetical notes for the common and preferred stock.