6.15 LO2

(a) The summarised statement of financial position of Leon Ltd is shown below:

Net assets 2,000,000 Ordinary share capital issued at $1 1,200,000 Preference share capital issued at $1 300,000 Retained profits 500,000 2,000,000 The directors decide to redeem the preference share capital. This is to be replaced by a further issue of 200,000 ordinary shares at $1.60 per share.

Show the revised statement of financial position after this has occurred.