On January 1, 2019, Knox Company showed the following alphabetical list of shareholders’ equity items:
Additional paid-in capital on ……………………$130,000
Additional paid-in capital on preferred stock ……………………….6,000
Common stock, $10 par ………………………………………………….100,000
Preferred stock, $100 par ………………………………………………..50,000
Retained earnings ………………………………………………………..224,000
Accumulated other comprehensive income ………………………9,000
During 2019, the following events occurred and were properly recorded by the company:
1. Knox issued 2,000 shares of for $25 per share.
2. Knox issued 110 shares of preferred stock for $116 per share.
3. Knox reacquired 400 shares of its as treasury stock at a cost of $26 per share.
4. Knox earned net income of $57,000.
5. Knox paid a $7 per share on the preferred stock and a $1.25 per share on the outstanding at the end of 2019 (treasury stock is not entitled to dividends).
Required:
Prepare a statement of shareholders’ equity for 2019, including retained earnings.
