On January 1, 2014, Shellenburger Inc. had the following stockholders’ equity account balances.
|
Common Stock, no-par value (500,000 shares issued) |
$1,500,000 |
|
Common Stock Dividends Distributable |
200,000 |
|
Retained Earnings |
600,000 |
During 2014, the following transactions and events occurred.
- Issued 50,000 shares of common stock as a result of a 10% stock dividend declared on December 15, 2013.
- Issued 30,000 shares of common stock for cash at $6 per share.
- Corrected an error that had understated the net income for 2012 by $70,000.
- Declared and paid a cash dividend of $80,000.
- Earned net income of $300,000.
Instructions
Prepare the stockholders’ equity section of the balance sheet at December 31, 2014.