On January 1, 1996, Cedeno Inc. had the following stockholders' equity balances:

During 1996, the following transactions and events occurred:
1. Issued 50,000 shares of \(\$ 2\) par value common stock as a result of \(10 \%\) stock dividend declared on December 15, 1995 .
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. Sold 5,000 shares of treasury stock for cash at \(\$ 6\) per share.
6. Earned net income of \(\$ 300,000\).
\section*{Instructions}
Prepare a stockholders' equity statement for the year.

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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