E12.18(LO4) Dirk SAreported the following balances at December 312019share capital-ordinary500.000.share premium-ordinary 100.000. and retained earnings 250.000.During 2020. the fol lowing transactions affected equity.

1. Issued preference shares with a par value of 125,000 for 200,000

2. Purchased treasury shares (ordinary)for 40,000.

3. Earned net income of180,000.

4.Declared and paid cash dividends of56000

Instructions

Prepare the equity section of Dirk SAs December 31,2020,statement of financial position.