Harrington Company reported the following balances at December 31, 2013: share capital-ordinary $500,000; share premium-ordinary $100,000; retained earnings $250,000. During 2014, the following transactions affected equity.
1. Issued preference shares with a par value of $150,000 for $220,000.
2. Purchased treasury shares (ordinary) for $30,000.
3. Earned net income of $140,000.
4. Declared and paid cash dividends of $75,000.
Instructions
Prepare the equity section of Harrington Company's December 31, 2014, statement of financial position.

Question

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The Answer of Harrington Company reported the following balances at December 31, 2013: share capital-ordinary $500,000; share premium-ordinary $100,000; retained earnings $250,000. During 2014, the following transactions affected equity.
1. Issued preference shares with a par value of $150,000 for $220,000.
2. Purchased treasury shares (ordinary) for $30,000.
3. Earned net income of $140,000.
4. Declared and paid cash dividends of $75,000.
Instructions
Prepare the equity section of Harrington Company's December 31, 2014, statement of financial position.

Harrington Company Reported the Following Balances at December 31, 2013