Assignment

Question 7

On January 1, 2017, Shellenburger Inc. had the following stockholders' equity account balances.

Common Stock, no-par value (490,000 shares issued)$980,000Common Stock Dividends Distributable209,000Retained Earnings635,000

During 2017, the following transactions and events occurred.

1.Issued73,500 shares of common stock as a result of a15% stock dividend declared on December 15, 2016.2.Issued34,700 shares of common stock for cash at $7 per share.3.Corrected an error that had understated the net income for 2015 by $72,300.4.Declared and paid a cash dividend of $83,000.5.Earned net income of $270,500.