Financial accounting 16th Edition by Jan Williams,Susan Haka,Mark Bettner ,Joseph Carcello

تمرين 11

Early in 2012, Robbinsville Press was organized with authorization to issue 100,000 shares of $100 par value preferred stock and 500,000 shares of $1 par value common stock.en thousand shares of the preferred stock were issued at par, and 170,000 shares of common stock were sold for $15 per share.he preferred stock pays an 8 percent cumulative dividend.
During the first four years of operations (2012 through 2015), the corporation earned a total of $1,385,000 and paid dividends of 75 cents per share in each year on its outstanding common stock.
Instructions
a.repare the stockholders' equity section of the balance sheet at December 31, 2015.nclude a supporting schedule showing your computation of the amount of retained earnings reported.Hint: Income increases retained earnings, whereas dividends decrease retained earnings.)
b.re there any dividends in arrears on the company's preferred stock at December 31, 2015 Explain your answer.