On January 1 2017 Shellenburger Inc had the following stockholders
On January 1, 2017, 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 2017, 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, 2016.
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 2015 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, 2017.

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