At December 31, 2009, Eaton, Corp., reported the following stockholders’ equity:

During 2010, Eaton, Corp., completed these transactions and events in this order:

a. Sold 1,000 shares of treasury stock for \($35\) per share; the cost of these shares was \($30\) per share.

b. Issued 500 shares of common stock at \($20\) per share.

c. Net income for the year was \($200,000\).

d. Declared and paid cash dividends of \($100,000\).

Requirement

1.Prepare Eaton’s statement of stockholders’ equity for 2010.

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Paid-in Capital: Common Stock, $5 par, 200,000 authorized, 120,000 shares issued Additional Paid-in Capital Total Paid-in Capital Retained Earnings Subtotal Less: Treasury Stock, 2,500 shares at cost Total Stockholders' Equity $ 600,000 100,000 $ 700,000 700,000 $1,400,000 (80,000) $1,320,000