On January 1, 2010, Sampson Inc. had these stockholders’ equity balances.

Common Stock, $1 par (2,000,000 shares authorized,
800,000 shares issued and outstanding)

$ 800,000

Paid in Capital in Excess of Par Value

1,500,000

Retained Earnings

600,000

During 2010, the following transactions and events occurred.

1. Issued 50,000 shares of $1 par value common stock for $3 per share.

2. Issued 60,000 shares of common stock for cash at $4 per share.

3. Purchased 20,000 shares of common stock for the treasury at $3.50 per share.

4. Declared and paid a cash dividend of $115,000.

5. Earned net income of $350,000.

Instructions

Prepare the stockholders’ equity section of the balance sheet at December 31, 2010.