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

Common Stock, $1 par (2,000,000 shares authorized, 600,000 shares issued and outstanding) $ 600,000 Paid-in Capital in Excess of Par Value 1,500,000 Retained Earnings 700,000 During 2014, the following transactions and events occurred.

1 Issued 50,000 shares of $1 par value common stock for $3 per share.

2 Issued 60,000 shares of common stock for cash at $4 per share.

3 Purchased 20,000 shares of common stock for the treasury at $3.80 per share.

4 Declared and paid a cash dividend of $207,000.

5 Earned net income of $410,000.

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

AppendixLO1