On January 1, 1998, Cedeno Inc. had these stockholders' equity balances:

During 1998, the following transactions and events occurred:
1. Issued 50,000 shares of \(\$ 2\) par value common stock as a result of a \(10 \%\) stock dividend declared on December 15, 1997.
2. Issued 30,000 shares of common stock for cash at \(\$ 5\) per share.
3. Purchased 20,000 shares of common stock for the treasury at \(\$ 6\) per share.
4. Declared and paid a cash dividend of \(\$ 100,000\).
5. Earned net income of \(\$ 300,000\).
\section*{Instructions}
Prepare the stockholders' equity section of the balance sheet at December 31, 1998

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Common Stock (500,000 shares issued) Paid-in Capital in Excess of Par Value Stock Dividends Distributable Retained Earnings $1,000,000 500,000 100,000 600,000