Kingsmere Ltd prepares IFRS financial statements to December 31. Its equity at January 1, 2026, as reported in the 2025 financial statements, was:

Component	Amount
Share Capital (ordinary shares of $1)	$200,000
Share Premium	50,000
Revaluation Surplus	30,000
Retained Earnings	120,000
Total equity	400,000

The following matters relate to 2026. Ignore income tax throughout.

Date	Event
January 1	Kingsmere discovered that depreciation of $8,000 on its delivery fleet had been omitted from the 2025 financial statements, which have already been issued. The error is material and is corrected retrospectively against opening retained earnings.
March 1	Issued 50,000 ordinary shares for $2.40 each in cash.
June 30	Land carried under the revaluation model at $180,000 was revalued to $205,000.
November 15	Declared a dividend of $0.10 per share on all shares in issue, payable on December 15.
December 15	Paid the dividend.
December 31	Transferred $3,000 of excess depreciation on a revalued building from the revaluation surplus to retained earnings, as the company's policy permits.

Profit for 2026, after correcting the error, was $86,000.

Required:

Journal Entries — record the six entries above. Use Retained Earnings, Accumulated Depreciation, Cash, Share Capital, Share Premium, Land, Revaluation Surplus and Dividends Payable.
Restated Opening Retained Earnings — retained earnings at January 1, 2026 after the correction.
Total Comprehensive Income — total comprehensive income for 2026.
Closing Balances — the revaluation surplus, retained earnings and total equity at December 31, 2026.
Equity Section — the equity section of the statement of financial position at December 31, 2026.

Statement of Changes in Equity

1 Statement of Changes in Equity practice challenge