On January 1, 2014, Hammond Inc had the following shareholders equity balances Common Stock , no par value (1,000,000 shares issued) $3,000,000 Common Stock Dividends Distributable 400,000 Retained Earnings 1,200,000 During 2014, the following transactions and events occurred 1 Issued 100,000 share...

Common Stock Common Stock Dividends Distributable Retained Earnin ...

On January 1, 2014, Hammond Inc. had the following shareholders equity balances. Common Stock , no-par value

Question:

On January 1, 2014, Hammond Inc. had the following shareholders’ equity balances.
, no-par value (1,000,000 shares issued) ....... $3,000,000
Dividends Distributable ............. 400,000
Retained Earnings ...................... 1,200,000
During 2014, the following transactions and events occurred.
1. Issued 100,000 shares of common stock as a result of a 10% stock declared on December 15, 2013.
2. Issued 60,000 shares of common stock for cash at $5 per share.
3. Corrected an error that had understated the net income for 2012 by $140,000.
4. Declared and paid a cash of $300,000.
5. Earned net income of $600,000.

Instructions
Prepare the stockholders’ equity section of the at December 31, 2014.

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...