P10-85B. (Learning Objectives 2, 4: Preparing the shareholders’ equity section of the Balance Sheet) Harry Corp. has the following shareholders’ equity information:

Harry’s constitution authorizes the company to issue 5,000 shares of 8% preference shares with par value of €120 and 400,000 shares of no-par ordinary shares. The company issued 1,000 shares of the preference shares at €120 per share. It issued 80,000 shares of the ordinary shares for a total of €520,000. The company’s retained earnings balance at the beginning of 20X6 was €72,000, and net income for the year was €93,000. During 20X6, Harry declared the specified dividend on preference shares and a €0.70 per-share dividend on ordinary shares.

Preference dividends for 20X5 were in arrears.

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