Problem 11.1A
Sample Worked Problem: Problem 11.1B
Part A
ROBBINSVILLE PRESS
Partial Balance Sheet
December 31, 2021
Stockholders' equity
	8% cumulative preferred stock, $100 par value, authorized 100,000 shares, issued and outstanding 10,000 shares		$1,000,000.0
	Common stock, $1 par value, authorized 500,000 shares issued and outstanding 170,000 shares		$ 170,000.00
	Additional paid-in capital: Common stock		$2,380,000.00
	Total paid-in capital		$3,550,000.00
	Retained earnings*		$ 875,000.00
	Total stockholders' equity		???
*Computation of retained earnings at December 31, 2021:
	Net income for the four-year period 2018-2021		???
	Less: Preferred dividends ($80,000 per year for four years)	???
	Common dividends ($0.75 x 170,000 shares x 4 years)	???	???
	Retained earnings, December 31, 2021		???
Part B
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L011-4, L011-5, L011-6 PROBLEM 11.1A Stockholders' Equity in a Balance Sheet Early in 2018 , 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. The preferred stock pays an 8 percent cumulative dividend. During the first four years of operations (2018 through 2021), 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. Prepare the stockholders' equity section of the balance sheet at December 31, 2021. Include a supporting schedule showing your computation of the amount of retained earnings reported. (Hint: Income increases retained earnings, whereas dividends decrease retained earnings.) b. Are there any dividends in arrears on the company's preferred stock at December 31,2021 ? Explain your