Problem 2-20 The Digital Systems Company was organized two years ago to take advantage of an Internet opportunity. Investors paid $12 a share for 2 million shares with a $4 par value. In the next two years, the company had earnings of $2 million and $3 million, respectively. It paid dividends of $1.2 million and $1.3 million, respectively, in those years. At the end of the first year, Digital sold another 500,000 shares of stock at $15.25 per share. Construct the equity section of Digital's balance sheet initially and at the end of its first and second years in business. An answer of $1.2 million should be entered as 1,200,000 Initially Common stock Paid in Excess Total Equity At The End Of The First Year Common stock Paid in Excess Retained Earnings Total Equity At The End Of The Second Year Check My Work Previous Next > Email Instructor Save and Exit Submit Assignment for Grading years. At the end of the first year, Digital sold another 500,000 shares of stock per share. Construct the equity section of Digital's balance sheet initially and at of its first and second years in business. An answer of $1.2 million should be ent 1,200,000 Initially Common stock Paid in Excess Total Equity At The End Of The First Year Common stock Paid in Excess Retained Earnings Total Equity At The End Of The Second Year Common stock Paid in Excess Retained Earnings Total Equity Check My Work Email Instructor Save and exit Submit Assignment for Grading