P14.3 (LO 1, 2, 3, 4) (Equity Transactions and Statement Preparation) Hatch plc has two classes of share capital outstanding: 8%, £20 par preference and £5 par ordinary. At December 31, 2024, the following accounts were included in equity.

Share Capital—Preference, 150,000 shares £ 3,000,000 Share Capital—Ordinary, 2,000,000 shares 10,000,000 Share Premium—Preference 200,000 Share Premium—Ordinary 27,000,000 Retained Earnings 4,500,000 The following transactions affected equity during 2025.

Jan. 1 30,000 preference shares issued at £22 per share.

Feb. 1 50,000 ordinary shares issued at £20 per share.

June 1 2-for-1 share split on ordinary shares (par value reduced to £2.50).

July 1 30,000 ordinary treasury shares purchased at £10 per share. Hatch uses the cost method.

Sept. 15 10,000 treasury shares reissued at £11 per share.

Dec. 31 The preference dividend is declared, and an ordinary dividend of 50 pence per share is declared.

Dec. 31 Net income is £2,100,000.

Instructions Prepare the equity section of the statement of financial position for Hatch plc at December 31, 2025.

Show all supporting computations.