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P11-5A The general ledger of Robichaud Corporation, a publicly traded company, contained the following shareholders' equity accounts in 2018: January1 December 31 Preferred shares (1o,oo0 and 20,ooo shares issued, respectively) 500,000 1,000,000 Common shares (320,00o and 370,0oo shares issued, respectively) 2,700,000 3.700,000 407,000 2,980,000 3.345.00 Stock dividends distributable Retained earnings A review of the accounting records for the year ended December 31, 2018, reveals the following information: 1. On January 1, 10,000 additional s5 noncumulative preferred shares were issued for $50 each. An unlimited number are authorized. 2. On Oetober 1, 50,000 common shares were sold for cash at s20 per share. An unlimited number are authorized. 3 The annual preferred shareholders' cash dividend was declared and paid during the year. 4. On December 3, a 5% stock dividend was declared on common shares when the share price was s22. The stock dividend is distributable on January 20 Net income for the year was $872,0o0. 6. On December 31, the board of directors authorized a $500,0oo restriction on retained earnings for a plant expansion. Instructions (a) Using T accounts, determine the transactions that explain the movement in the Preferred Shares, Common Shares, Dividends Declared, Stock Dividends Distributable, and Retained Earnings general ledger accounts for the year. (Hint: Although not required, you may find it helpful to prepare journal entries.) (b) Prepare the shareholders' equity section of the statement of financial position at December 31, including any required note disclosure

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