The following accounts appear in the ledger of Horner Inc. after the books are closed at December 31.

Common Stock, no par, $1 stated value, 400,000 shares authorized; 300,000 shares issued

$ 300,000

Common Stock Dividends Distributable

30,000

Paid-in Capital in Excess of Stated Value—Common Stock

1,200,000

Preferred Stock, $5 par value, 8%, 40,000 shares authorized; 30,000 shares issued

150,000

Retained Earnings

800,000

11easury Stock (10,000 common shares)

74,000

Paid-in Capital in Excess of Par—Preferred Stock

344,000

Instructions

Prepare the stockholders’ equity section at December 31, assuming retained earnings is restricted for plant expansion in the amount of $100,000.