Bunkles Inc. was organized in 20X1. The incorporation documents permitted the company to issue unlimited numbers of common and preferred shares. In 20X1, 300,000 common shares were sold to the public for $20 a share, and 20,000 preferred shares were sold at $100 each. The preferred shares were entitled to a $10 cumulative dividend each year. During 20X1, 20X2 and 20X3, Bunkles earned a total of $1,400,000. The company did not pay any dividends in 20X1 or 20X2, but paid a dividend of $0.50 per share to the common shareholders in 20X3. Required: Prepare the shareholders' equity section of the balance sheet at the end of 20X3.