Hi can you please help me figure out this problem. I'm really confused on how it works.

P1 4-58 On January 1, 2012, Beacham 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 2012, the following transactions and events occurred. 1. Issued 100,000 shares of common stock as a malt of a 10% stock dividend declared on December 15, 2011. Issued 60,000 shares of common stock for cash at $5 per share. Corrected an error that had mderstated the net income for 2010 by $140,000. Declared and paid a cash dividend of $300,000. Earned net income of $600,000. Instructions Prepare the stockholders' equity section of the balance sheet at December 31, 2012. wewy