Chapter 11, Problem 11.5AP

(a)

To determine

Retained earnings: It refers to the amount of earnings that are not paid as dividends to the stockholders rather kept by the corporation for reinvestments, payment of debts, and future growth.

Stockholders’ Equity Section: It is refers to the section of the balance sheet that shows the available balance stockholders’ equity as on reported date at the end of the financial year.

To reproduce: the retained earnings T-account of Corporation S for the year 2019.

(b)

To determine

To Prepare: The stockholders’ equity section of balance sheet for Corporation S as at December 31, 2019.

(c)

To determine

To compute: The allocation of the cash dividends to preferred stock and common stock.