Prepare the stockholders equity section of the balance sheet

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Question - 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 common stock 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 corporation earned a total of $1,385,000 and paid dividends of 75 cents per share in each year on its outstanding common stock.

Required - Prepare the stockholders' equity section of the balance sheet at December 31, 2018. Include a supporting schedule showing your computation of the amount of retained earnings reported.

Reference no: EM133042646

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