Write a stockholder’s equity statement.The question contains the following information:Part 3: Equity TransactionsPrepare the stockholders’ equity section for Reynolds Company at December 31, 2016. Show all supporting computations.Reynolds Company has two classes of capital stock outstanding: 8%, $30 par preferred and $10 par common. At December 31, 2017, the following accounts were included in stockholders’ equity.Preferred Stock, 165,000 shares  $ 4,950,000Common Stock, 2,200,000 shares 22,000,000Paid-in Capital in Excess of Par—Preferred 330,000Paid-in Capital in Excess of Par—Common 45,100,000Retained Earnings  8,278,600The following transactions affected stockholders’ equity during 2018.Jan. 1 30,000 shares of preferred stock issued at $45 per share.Feb. 1 37,500 shares of common stock issued at $23 per share.June 1             2-for-1 stock split (par value reduced to $5.00).July 1               33,000 shares of common treasury stock purchased at $22 per share. Reynolds uses the cost method.Sept. 15           11,000 shares of treasury stock reissued at $24 per share.Dec. 31            The preferred dividend is declared, and a common dividend of 40¢ per share is declared.Dec. 31            Net income is $3,492,5000.