On January 1, 2013, Knox Company showed the following alphabetical list of shareholders' equity items:

Additional paid-in capital on common stock ...........$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

During 2013, the following events occurred and were properly recorded by the company:

1. Knox purchased an investment in available-for-sale securities. At year-end, the fair value of the securities had increased by $9,000.

2. Knox issued 2,000 shares of common stock for $25 per share.

3. Knox issued 110 shares of preferred stock for $116 per share.

4. Knox reacquired 400 shares of its common stock as treasury stock at a cost of $26 per share.

5. Knox earned net income of $57,000.

6. Knox paid a $7 per share dividend on the preferred stock and a $1.25 per share dividend on the common stock outstanding at the end of 2013 (treasury stock is not entitled to dividends).

Required:

Prepare a statement of shareholders' equity for 2013, including retained earnings.