For the year ended December 31, 2013, Evans Inc. reported the following shareholders' equity: Common shares, 400,000 shares authorized,
140,000 shares issued and outstanding....................$1,400,000
Retained earnings................................................672,000
................................................................../$2,072,000
During 2014, Evans Inc. completed these transactions and events (listed in chronological order):
a. Declared and issued a 10-percent stock dividend. At the time, Evans Inc.'s common shares were quoted at a market price of $11.50 per share.
b. Sold 1,000 common shares for $12.50 per share.
c. Sold 1,000 common shares to employees at $10.00 per share.
d. Net income for the year was $397,500.
e. Declared and paid cash dividends of $140,000.
Required
Prepare Evans Inc.'s statement of shareholders' equity for 2014.