Liabilities and Shareholders' Equity Liabilities: Current liabilities . . $2,500,000 $1,000,000 Bonds payable, 12% . . . 2,000,000 2,000,000 Total liabilities . . . . .. 4,500,000 3,000,000 Shareholders' equity: Preferred shares, 8%, $10 par. .. 1,500,000 1,500,000 Common shares, $5 par .. 1,000,000 1,000,000 Retained earnings . . . 2,970,000 2,400,000 Total shareholders' equity . . .. 5,470,000 4,900,000 Total liabilities and shareholders' equity . .. . $9,970,000 $7,900,000