Q : Prepare an equity section at December 31, 2017.

The post-closing trial balance of Indigo Company SpA at December 31, 2017, contains the following equity accounts Share Capital-Preference (14,800 shares issued) Share Capital-Ordinary (251,500 shares issued) Share Premium-Preference Share Premium-Ordinary Ordinary Share Dividends Distributable Retained Earnings 740,000 3,521,000 242,000 407,200 352,100 948,300 A review of the accounting records reveals the following 1. No errors have been made in recording 2017 transactions or in preparing the closing entry for net income 2. Preference shares are 50 par, 896, and cumulative: 14,800 shares have been outstanding since January 1, 2016 3. Authorized shares are 20,000 preference shares, 503,000 ordinary shares with a 14 par value 4. The January 1 balance in Retained Earnings was 1,126,800 5. On July 1, 19,900 ordinary shares were issued for cash at 17 per share 6. On September 1, the company discovered an understatement error of 82,500 in computing depreciation in 2016. The net of tax effect of 57,750 was properly debited directly to Retained Earnings. 7. A cash dividend of 256,800 was declared and properly allocated to preference and ordinary shares on October 1. No dividends were paid to preference shareholders in 2016 8. On December 31, a 10% ordinary share dividend was declared out of retained earnings on ordinary shares when the market price per share was 17 9. Net income for the year was 563,600 10. On December 31, 2017, the directors authorized disclosure of a 190,100 restriction of retained earnings for plant expansion