The Arcadia Company began operations on January 1, by issuing 500,000 shares of \($1\) par value common stock at a price of \($10.00\) per share. During the first year of operations, the company generated revenue of \($2\) million and incurred expenses totaling \($800,000\). (Assume all transactions are in cash.) During its second year of operations, the company executed the following events in the sequence listed:

a. Declared a 2-for-1 forward stock split.

b. Repurchased 10,000 shares of its common stock for cash at a price of \($15\) per share.

c. Declared and distributed a ten percent stock dividend on the outstanding shares at a time when the market price per common share was \($18\) per share.

d. Paid a cash dividend of \($.10\) per share on all outstanding common shares.

e. Generated revenue of \($3\) million and incurred expenses of \($1.2\) million.

Required
Using a spreadsheet approach, record the transactions for Years 1 and 2 for The Arcadia Company. Using the account balances at the end of Year 2, prepare the shareholders’ equity section of the balance sheet for The Arcadia Company.