On January 1, 2014, Hammond Inc. had the following shareholders' equity balances.
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Common Stock, no-par value (1,000,000 shares issued)
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$3,000,000
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Common Stock Dividends Distributable
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400,000
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Retained Earnings
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1,200,000
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During 2014, the following transactions and events occurred.
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1.
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Issued 100,000 shares of common stock as a result of a 10% stock dividend declared on December 15, 2013.
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2.
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Issued 60,000 shares of common stock for cash at $5 per share.
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3.
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Corrected an error that had understated the net income for 2012 by $140,000.
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4.
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Declared and paid a cash dividend of $300,000.
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5.
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Earned net income of $600,000.
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Instructions:
Prepare the stockholders' equity section of the balance sheet at December 31, 2014.
Total stockholders' equity $5,340,000