The following was obtained from the ledger of Valediction Ltd as at 30 June 2018:

Share capital 100 000 ordinary shares paid to 75c, but issued for $1 60 000 10% preference shares fully paid at $1 Calls in advance General reserve Retained earnings 1/7/17 Profit for year (before tax) Interim dividend paid on ordinary shares (1/1/18)

$

75 000 60 000 1 000 20 000 16 000 55 000 8 000

End-of-year adjustments

1. Income tax expense of $15 400 is to be recognised. The company pays tax in one instalment annually.

2. Declare a dividend on the preference shares for the current year.

3. Declare a final dividend on ordinary shares of $3000. No ratification is required at the annual meeting.

4. Transfer $5000 from the general reserve to retained earnings.

Required

Prepare a statement of changes in equity for Valediction Ltd for the year ended 30 June 2018.