P10-77A. (Learning Objectives 2, 4: Preparing the shareholders’ equity section of the Balance Sheet) Garry Corp. has the following shareholders’ equity information:

Garry’s constitution authorizes the company to issue 8,000 shares of 5% preference shares with par value of $140 and 600,000 shares of no-par ordinary share. The company issued 1,600 shares of the preference share at $140 per share. It issued 120,000 shares of the ordinary share for a total of $540,000. The company’s retained earnings balance at the beginning of 20X6 was

$75,000, and net income for the year was $94,000. During 20X6, Garry declared the specified dividend on preference shares and a $0.40 per-share dividend on ordinary shares. Preference dividends for 20X5 were in arrears.

Requirement 1. Prepare the shareholders’ equity section of Garry Corp.’s Balance Sheet at December 31, 20X6. Show the computation of all amounts. Journal entries are not required.