Answer:  
$1,114,000   -  total equity section
Balance sheet extract
common stock   (120,000 units)                   $720,000
common stock share premium                     $240,000
preference shares (8 000 units)                   $80,000
preference share premium                            $36,000
Profit (net income)                                       <u>     $ 38,000</u>
                                                                           $1,114,000      
Explanation:
common stock account (100,000 + 20,000) x $6 par value = $720,000
common stock premium per unit is calculated $18 minus par value of $6 = $12. total premium is 12 x 20,000 units issued= $240,000
Preference shares account = (5000+3000) x $10 = $80,000
preference share premium (22 minus 10) = $12 per unit
total preference shares premium is $12 x 3000 issued units= $36,000