The following information is available for a limited company.
At 1 April 2021 the balance of the retained earnings account was $\$ 858000$.
On 31 March 2022 the directors transferred $\$ 280000$ to a general reserve. They also issued 250000 bonus shares of $\$ 1$ each using the general reserve.
What was the balance of the retained earnings account at 31 March 2022?
1 )
$\$ 1056000$
$\$ 1306000$
3 )
$\$ 1406000$
4 )
$\$ 1586000$
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