Early in 2015, 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 Ten thousand shares of the preferred stock were issued at par, and 170,000 shares of common stock were sold for $15 per share ...

a ROBBINSVILLE PRESS Partial Balance Sheet December 31 2018 Stockholders equity 8 cumulative preferr ...

Early in 2015, Robbinsville Press was organized with authorization to issue 100,000 shares of $100 par value

Question:

Early in 2015, Robbinsville Press was organized with authorization to issue 100,000 shares of $100 preferred stock and 500,000 shares of $1 common stock. Ten thousand shares of the preferred stock were issued at par, and 170,000 shares of were sold for $15 per share. The preferred stock pays an 8 percent cumulative dividend.
During the first four years of operations (2015 through 2018), the 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. Prepare the stockholders' equity section of the at December 31, 2018. Include a supporting schedule showing your computation of the amount of retained earnings reported.
b. Are there any dividends in arrears on the company's preferred stock at December 31, 2018? Explain your answer.
Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may... Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...