P$4-9$ Statement of Shareholders' Equity On January $1,$ Year $7,$ Knox Company showed the following alpha$-$

LO $4\mathrm{.}4$ betical list of shareholders' equity items:

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

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

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

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

Record the reacquisition cost in a Treasury Stock account.$)$

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

Knox paid a $$7$ per share dividend on the preferred stock and a $$1\mathrm{.}25$ per share dividend on the

common stock outstanding at the end of the year $($treasury stock is not entitled to dividends$).$

Required:

Prepare a statement of shareholders' equity for Year $7,$ including retained earnings.