Activate Ltd has an authorised capital of £600,000, comprising of 400,000 ordinary shares of £1 each and 200,000 6 per cent preference shares of £1 each. Of these, 300,000 ordinary shares and 140,000 preference shares had been issued when the company first started trading. The following information is available:
• The company has a financial year end of 31 December. The first three years of business resulted in net profit as follows; 2015 £120,000; 2016 £190,000; 2017 £230,000.
• Dividends were paid each year on the preference shares. Dividends on the ordinary shares were proposed as follows: 2015 5 per cent; 2016 7 per cent; 2017 10 per cent.
• Transfers to reserves were: general reserve 2015 £20,000, 2016 £42,000, and foreign exchange reserve 2017 £32,000.
You are to show the statement of changes in equity for each of the years 2015, 2016 and 2017.