Question

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.
1. Issued 50,000 shares of common stock as a result of a 10% stock dividend declared on
December 15, 2013.
2. Issued 30,000 shares of common stock for cash at $6 per share.
3. Corrected an error that had understated the net income for 2012 by $70,000.
4. Declared and paid a cash dividend of $80,000.
5. Earned net income of $300,000.

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



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  • CreatedJanuary 30, 2014
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