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

Statement of Shareholders' Equity On January 1, Year 7, Knox Company showed the following alphabetical list of shareholders' equity items: During the year, the following events occurted and were properly recorded by the company: 1. Knox issued 2,000 shares of common stock for $25 per share. 2. Knax issued 110 shares of preferred stock for $116 per share. 3. 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) 4. Knox earned net income of $57,000. 5. Knox paid a $7 per share dividend on the preferted stock and a $1.25 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 retaned earnings. KNOX COMPANY