Kaye Biotech Inc. had the following equity account balances at December 31, 2013:
Preferred shares, $2.45, non-cumulative,
Authorized: 20,000 shares
Issued and outstanding: 5,000 shares ............................................................. $ 35,000
Common shares,
Authorized: Unlimited
Issued and outstanding: 85,000 shares........................................................... 287,695
Retained earnings............................................................................................... 40,600
On February 1, 2014, 5,000 preferred shares were issued at $7.70 each. The board of directors declared and paid the annual cash dividend on the preferred shares on June 30, 2014, and a 12% common share dividend was declared and distributed on the same day when the market price per common share was $4.20. On October 1, 2014, 20,000 common shares were issued at $4.34 each. Net income earned during 2014 was $408,800.

Required
Using the information provided, prepare the statement of changes in equity for the year ended December 31, 2014.