On January 1, 2020, 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 2020, the following transactions and events occurred.
- Issued 50,000 shares of common stock as a result of a 10% stock dividend declared on December 15, 2019.
- Issued 30,000 shares of common stock for cash at $6 per share
- Corrected an error that have understated the net income for 2018 by $70,000.
- Declared and paid a cash dividend of $80,000.
- Earned net income of $300,000
Instruction
Prepare the stockholders' equity section of the balance sheet at December 31, 2020.
Solution
Primary Analysis
Shellenburger Inc.
Balance Sheet (Partial)
December 31, 2020
Balance Sheet (Partial)
December 31, 2020
