On December 31, 1997, K. Schipper Company had 1,000,000 shares of \(\$ 1\) par common stock issued and outstanding. The stockholders' equity accounts at December 31, 1997, had the balances listed here:

Transactions during 1998 and other information related to stockholders' equity accounts were as follows:
1. On January 9,1998 , Schipper issued at \(\$ 6\) per share 100,000 shares of \(\$ 5\) par value, \(8 \%\) cumulative preferred stock.
2. On February 8,1998 , Schipper reacquired 10,000 shares of its common stock for \(\$ 12\) per share.
3. On June 10 , 1998, Schipper declared a cash dividend of \(\$ 1\) per share on the common stock outstanding, payable on July 10, 1998, to stockholders of record on July 1, 1998 4. On December 15, 1998, Schipper declared the yearly cash dividend on preferred stock, payable December 28, 1998 to stockholders of record on December 15, 1998 5. Net income for the year is \(\$ 2,400,000\). At December 31,1998 , the market price of the common stock was \(\$ 15\) per share.
\section*{Instructions}
Prepare the stockholders' equity section of Schipper's balance sheet at December 31, 1998.

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Common Stock $1,000,000 Additional Paid-in Capital 500,000 Retained Earnings 700,000