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1. value 30.00 points Problem 11.1A Shareholders' equity in a statement of financial position L.O. 4, 5, 6 Early in 2010, Robbinsville Press was organized with authorization to issue 100,000 shares of $100 par value preference shares and 500,000 shares of $1 par value ordinary shares. Ten thousand shares of the preference shares were issued at par, and 170,000 shares of ordinary shares were sold for $15 per share. The preference shares pays an 8 percent cumulative dividend. During the first four years of operations (2010 through 2013), the corporation earned a total of $1,085,000 and paid dividends of 75 cents per share in each year on its outstanding ordinary shares. a. Prepare the shareholders' equity section of the statement of financial position at December 31, 2013 Include a supporting schedule showing your computation of the amount of retained earnings reported. (Hint: Income increases retained earnings, whereas dividends decrease retained earnings.) (Input all amounts as positive values. Omit the "S" sign in your response.) ROBBINSVILLE PRESS Partial Statement of Financial Position December 31, 2013 Shareholders' equity Cumulative preference shares (Click to select) Retained earnings Total paid-in capital Retained earnings Loss Click to select) (Click to select) Retained earnings, December 31, 2013 Total shareholders' equity b. Are there any dividends in arrears on the company's preference shares at December 31, 2013? Yes No

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