On January 1, 2014, Ferris Inc. had these stockholders’ equity balances.

Common Stock, $5 par (2,000,000 shares authorized, 600,000 shares issued and outstanding) $3,000,000 Paid-in Capital in Excess of Par Value 1,800,000 Retained Earnings 810,000 During 2014, the following transactions and events occurred.

1 Issued 75,000 shares of $5 par value common stock for $9 per share.

2 Issued 60,000 shares of common stock for cash at $9.50 per share.

3 Purchased 25,000 shares of common stock for the treasury at $10 per share.

4 Declared and paid a cash dividend of $284,000.

5 Earned net income of $860,000.

Instructions Prepare the stockholders’ equity section of the balance sheet at December 31, 2014.

AppendixLO1