Ordinaire Inc. was incorporated with an authorized share capital of 100,000 preferred shares, with a par value of $ 15 per share. The company also owns common shares with no par value. The authorized number of ordinary shares is 200,000.

As of January 1, X1, there were 10,000 preferred shares issued and outstanding and 25,000 ordinary shares. Here is the account balance on January 1, X1:

Preferred shares: $ 150,000

Common shares: $ 35,000

Premium on preferred shares: $ 25,000

As of December 31, X1, just before the declaration of dividends, the balance of retained earnings (RND) was $ 460,000.

During fiscal year X1, the following two transactions took place:

September 1: issue of 1,000 preferred shares in cash at $ 20 each.

December 31: declaration of a cash dividend in the amount of $ 175,000.

You should consider these two transactions to update Ordinary Inc.'s accounts before presenting the equity section as at December 31, X1.