Statement of Shareholders' Equity

On January 1, 2016 the Knox Company showed the following alphabetical list of Shareholders' Equity balances:

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 2016, the following events occurred and were properly recorded by the company:

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

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 $1.25 per share dividend on the common stock outstanding at the end of 2016 (treasury stock is not entitled to dividends).

Required:

Prepare a statement of shareholders' equity for 2016, including retained earnings.

KNOX COMPANY
Statement of Shareholders Equity
For Year Ended December 31, 2016
	Preferred Stock $100 par	Common Stock $10 par	Additional Paid-in Capital on Preferred Stock	Additional Paid-in Capital on Common Stock	Retained Earnings	Accumulated Other Comprehensive Income	Treasury Stock	Total
Balances, 1/1/16	$	$	$	$	$			$
Unrealized increase in value of available-for-sale securities
Common stock issued
Preferred stock issued
Common stock reacquired
Net income
Cash dividend paid on preferred stock
Cash dividend paid on common stock
Balances, 12/31/16	$	$	$	$	$	$	$	$