P11-5B On December 31, 2016, Andes Company SA had 1,500,000 10 par ordinary shares issued and outstanding. The equity accounts at December 31, 2016, had the follow- ing balances. Share Capital-Ordinary Share Premium-Ordinary Retained Earnings 15,000,000 1,500,000 900,000 Transactions during 2017 and other information related to equity accounts were as follows. 1. On January 10, 2017, Andes issued at 104 per share 100,000 100 par value, 7% cumu- lative preference shares. 2. On February 8, 2017, Andes reacquired 16,000 ordinary shares for 14 per share. 3. On June 8, 2017, Andes declared a cash dividend of 1 per share on the ordinary shares outstanding, payable on July 10, 2017, to shareholders of record on July 1, 2017. 4. On December 15, 2017, Andes declared the yearly cash dividend on preference shares, payable January 10, 2018, to shareholders of record on December 15, 2017. 5. Net income for the year is 3,600,000. 6. It was discovered that depreciation expense had been understated in 2016 by 58,000. Instructions (a) Prepare a retained earnings statement for the year ended December 31, 2017. (b) Prepare the equity section of Andes's statement of financial position at December 31, 2017.