On January 1, 2017, Marchelle Incorporated had an unlimited number of common shares authorized, 220,000 issued, and the balance in the Common Shares account was $2.2 million. The company reported a balance in Retained Earnings on this date of $850,000 and accumulated other comprehensive income of $27,000. During the year, the following occurred:

1. Issued 80,000 common shares at $15 per share on July 1.

2. Declared a 3-for-2 stock split on September 30 when the fair value was $19 per share.

3. Declared a 5% stock dividend on December 9 to common shareholders of record at December 30, distributable on January 16, 2018. At the declaration date, the fair value of the common shares was $22 per share.

4. Earned profit of $390,000 for the year.

5. Recognized a loss on equity investments of $38,000 before tax, which will be reported as other comprehensive income. The company's income tax rate is 25%.

Instructions

Prepare a statement of changes in shareholders' equity for the year ended December 31, 2017.