On January 1, 2014, Grieve Grocers Inc.'s retained earnings account had a deficit (negative) balance of $75,000. During the year ended December 31, 2014, the company's second year of operations, Grieve had the following events which occurred in the sequence listed:
1. Declared and distributed a 10% stock dividend on common shares. Prior to the dividend, Grieve had 60,000 common shares issued with a total cost of $160,000, and the market value of the shares was $6.50 each.
2. Approved at two-for-one stock split.
3. Declared a cash dividend in the amount of $1 per share which is payable 15 days after the company's year end.
4. Profit for the year before taxes was $712,000.
5. Corrected the calculation of the prior year's cost of goods sold, which had been reported as $875,000 but which should have been $900,000, and adjusted the resulting tax savings.
6. Incurred an Other Comprehensive Loss of $174,500 (before income taxes).
Instructions
Prepare Grieve's statement of changes in shareholders' equity for the year ended December 31, 2014 assuming that Grieve has an income tax rate of 25%.

Question

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The Answer of On January 1, 2014, Grieve Grocers Inc.'s retained earnings account had a deficit (negative) balance of $75,000. During the year ended December 31, 2014, the company's second year of operations, Grieve had the following events which occurred in the sequence listed:
1. Declared and distributed a 10% stock dividend on common shares. Prior to the dividend, Grieve had 60,000 common shares issued with a total cost of $160,000, and the market value of the shares was $6.50 each.
2. Approved at two-for-one stock split.
3. Declared a cash dividend in the amount of $1 per share which is payable 15 days after the company's year end.
4. Profit for the year before taxes was $712,000.
5. Corrected the calculation of the prior year's cost of goods sold, which had been reported as $875,000 but which should have been $900,000, and adjusted the resulting tax savings.
6. Incurred an Other Comprehensive Loss of $174,500 (before income taxes).
Instructions
Prepare Grieve's statement of changes in shareholders' equity for the year ended December 31, 2014 assuming that Grieve has an income tax rate of 25%.