3. The accounting period for Savarro Bhd ends on 31 December every year. The company was authorized to issue 5,000,000 ordinary shares. The following information relates to the ending balance of shareholders' equity accounts of Savarro Bhd on 31 December 2019: 1. Retained earnings was RM760,000. 2. General reserves was RM500,000. 3. Savarro Bhd had 1,000,000 issued and paid ordinary shares. The ordinary shares include: 1. 500,000 shares issued for cash on 1 January 2017 at RM1.25 per share, ii. 500,000 shares issued for cash on 1 July 2018 at RM1.75 per share The following information relates to Savarro Bhd. for the year ended 31 December 2020: 1. Profit for the year was RM4,357,000. 2. Dividend of RM450,000 was paid during the year. 2 3. The company issued 1,000,000 new ordinary shares at an issue price of RM1.20 per share. Required: a) One of the components of equity is capital. Define 'Issued Share Capital'. b) Prepare a Statement of Changes in Equity for the year ended 31 December 2020 for Savarro Bhd