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The annual report for Malibu Beachwear reported the following transactions affecting stockholders equity:

1. Purchased $351,000 of common stock now held in treasury.
2. Declared cash dividends in the amount of $260,500.
3. Paid the dividends in (b).
4. Issued 110,000 new shares of $0.10 par value common shares for $2 per share.
5. Closed the Dividends account.

1. Prepare a statement of stockholders equity, assuming the following opening balances. Net income for the current year was $280,000.