When Resisto Systems, Inc., was formed, the company was authorized to issue 5,000 shares of $100 par value, 8 percent cumulative preferred stock, and 100,000 shares of $2 stated value common stock.

Half of the preferred stock was issued at a price of $104 per share, and 78,000 shares of the common stock were sold for $19 per share. At the end of the current year, Resisto has retained earnings of $382,000.

a.
Prepare the stockholders’ equity section of the company’s balance sheet at the end of the current year.

To prepare the stockholders' equity section of the company's balance sheet at the end of the current year, we need to calculate the amounts for preferred stock, common stock, and retained earnings.

1. Preferred Stock:
- The authorized preferred stock is 5,000 shares with a par value of $100 each.
- Half of the preferred stock (2,500 shares) was issued at a price of $104 per share.
- Calculate the total preferred stock value:
2,500 shares * $104 = $260,000

2. Common Stock:
- The authorized common stock is 100,000 shares with a stated value of $2.
- 78,000 shares of common stock were sold at $19 per share.
- Calculate the total common stock value:
78,000 shares * $19 = $1,482,000

3. Retained Earnings:
- The retained earnings at the end of the current year is given as $382,000.

Now, let's sum up the total stockholders' equity section:

Preferred Stock: $260,000
Common Stock: $1,482,000
Retained Earnings: $382,000

The stockholders' equity section of the company's balance sheet at the end of the current year would be as follows:

Stockholders' Equity
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Preferred Stock: $260,000
Common Stock: $1,482,000
Retained Earnings: $382,000
Total Stockholders' Equity: $2,124,000