The Stockholders' Equities of Penn Corporation and Simon Corporation Were

Essay

The stockholders' equities of Penn Corporation and Simon Corporation were as follows on January 1, 2013: $\begin{array}{lrr}&\text { Penn Corp. }&\text { Simon Corp. }\\\text { Common Stock, } \$ 1 \text { par } & \$ 1,000,000 & \$ 600,000 \\\text { Other Contributed Capital } & 2,800,000 & 1,100,000 \\\text { Retained Earnings } & 600,000 & 340,000 \\\text { Total Stockhol ders' Equity } & \$ 4,400,000 & \$ 2,040,000\end{array}$
On January 2, 2013 Penn Corp.issued 100,000 of its shares with a market value of $14 per share in exchange for all of Simon's shares, and Simon Corp.was dissolved.Penn Corp.paid $10,000 to register and issue the new common shares.
Required:
Prepare the stockholders' equity section of Penn Corp.balance sheet after the business combination on January 2, 2013.