Question 3 (Statement of shareholders equity)

Below is the statement of shareholders equity of King Ltd.:

	December 31, 2020
Shareholders equity
Preference share capital (3,100 shares)	$120,000
Ordinary share capital (7,500 shares)	187,000
Retained profits	410,000
Total shareholders equity	717,000

The following transactions happen during 2021:

1. Feb 2: Issuance of ordinary shares 2,500 shares @ $25 per share
2. July 10: Repurchase 500 shares of preference share at $42 per share, out of share capital
3. Oct 20: Issue 3 bonus ordinary shares for each 10 ordinary shares. The company has decided to capitalize 1/5 of its retained profits for this bonus share issuance.
4. Net income is $68,200 for the year.

Required:

Prepare the Statement of Changes of Shareholders Equity and Statement of Shareholders Equity for year 2021.