For the year ended December 31, 2016, 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
Total shareholders' equity ......................................................... $2,072,000
During 2017, 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 2017.