On January 1, 2010, Sampson Inc. had these stockholders' equity balances. Common Stock, $1 par (2,000,000 shares authorized, 800,000 shares issued...

On January 1, 2010, Sampson Inc. had these stockholders’ equity balances. Common Stock, $1 par (2,000,000 shares authorized,

800,000 shares issued and outstanding) ………….$ 800,000

Paid-in Capital in Excess of Par Value ……………1,500,000

Retained Earnings ………………………………….600,000

During 2010, 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 $3.50 per share.

4. Declared and paid a cash dividend of $115,000.

5. Earned net income of $350,000.

Instructions

Prepare the stockholders’ equity section of the balance sheet at December 31, 2010.