On January 1, 2012, Gabriel Inc. had these stockholder equity balances.

Common Stock, $1 par (1,000,000 shares authorized;

500,000 shares issued and outstanding)

$ 500,000

Paid-in Capital in Excess of Par Value

1,000,000

Retained Earnings

600,000

During 2012, the following transactions and events occurred.

1. Issued 70,000 shares of $1 par common stock for $245,000.

2. Issued 40,000 common shares for cash at $4 per share.

3. Purchased 18,000 shares of common stock for the treasury at $4 per share.

4. Declared and paid a cash dividend of $296,000.

5. Reported net income of $510,000.

Instructions

Prepare the stockholders” equity section of the balance sheet at December 31, 2012.