On January 1, 2012, Hammermeister Inc. had the following stockholders' equity account balances.
- Common Stock, no-par value (513,000 shares issued) $2,052,000
- Common Stock Dividends Distributable 159,000
- Retained Earnings 569,000
During 2012, the following transactions and events occurred.
1. Issued 76,950 shares of common stock as a result of a 15% stock dividend declared on December 15, 2011.
2. Issued 28,000 shares of common stock for cash at $6 per share.
3. Corrected an error that had understated the net income for 2010 by $67,000.
4. Declared and paid a cash dividend of $85,000.
5. Earned net income of $289,000.
Prepare the stockholders' equity section of the balance sheet at December 31, 2012. (For preferred stock, common stock and treasury stock enter the account name only and do not provide the descriptive information provided in the question.)