The December 31, 2020, equity section of Zoom Zoom Inc.'s balance sheet appears below. Zoom Zoom Inc. Equity Section of the Balance Sheet Contributed capital: December 31, 2020 Preferred shares, $3.75 cumulative, 43,000 shares authorized and issued Preferred shares, $10 non-cumulative, 7,700 shares authorized and issued Common shares, 430,000 shares authorized and issued Total contributed capital Retained earnings Total equity $1,690,000 700,000 1,780,000 $4,170,000 756,600 $4,926,600 Required: All the shares were issued on January 1, 2018 (when the corporation began operations). No dividends had been declared during the first two years of operations (2018 and 2019). During 2020, the cash dividends declared and paid totalled $628,300. 2. Assuming profit earned during 2020 was $1,265,000, determine the December 31, 2019, balance in retained earnings. Retained earnings balance 3. Prepare a statement of changes in equity for the year ended December 31, 2020. (Amounts to be deducted should be indicated by a minus sign.) ZOOMZOOM INC. Statement of Changes in Equity For Year Ended December 31, 2020 Preferred shares, $3.75 cum. Preferred shares, $10 Non-cum. Common Retained shares earnings Total equity Balance, January 1 Issuance of shares Dividends Balance, December 31 $ 0 $ 0 $ 0 $ 0 $ 0