Prepare stockholders’ equity section The stockholders’ equities of Pillow Corporation and Sleep-bank Corporation at January 1 were as follows (in thousands):

Pillow Sleep-bank Capital stock, $10 par

$1,500

$ 800 Other paid-in capital 200 400 Retained earnings 600 300 Stockholders’ equity S2.300 S 1.500 On January 2, Pillow issued 150,000 of its shares with a market value of $20 per share for all of Sleep-bank’s shares, and Sleep-bank was dissolved. On the same day, Pillow paid $5,000 to register and issue the shares and $10,000 for other direct costs of combination.

REQUIRED: Prepare the stockholders’ equity section of Pillow Corporation’s balance sheet immediately after the business combination on January 2.