B The post-closing trial balance of Flicka Corporation at December 31, 2012, contains these stockholders’ equity accounts.

A review of the accounting records reveals this information:
1. Preferred stock is $50 par, 10%, and cumulative; 6,000 shares have been outstanding since January 1, 2011.
2. Authorized stock is 20,000 shares of preferred and 500,000 shares of common with a $10 par value.
3. The January 1, 2012, balance in Retained Earnings was $660,000.
4. On July 1, 20,000 shares of common stock were sold for cash at $16 per share.
5. A cash dividend of $380,000 was declared and properly allocated to preferred and common stock on October 1. No dividends were paid to preferred stockholders in 2011.
6. Net income for the year was $525,000.
7. On December 31, 2012, the directors authorized disclosure of a $150,000 restriction of retained earnings for plant expansion. (Use Note X.)
Instructions

(a) Reproduce the retained earnings account for the year.

(b) Prepare the stockholders’ equity section of the balance sheet at December 31.

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Preferred Stock (6,000 shares issued) Common Stock (350,000 shares issued) Paid-in Capital in Excess of Par Value-Preferred Stock Paid-in Capital in Excess of Par Value-Common Stock Retained Earnings $ 300,000 3,500,000 250,000 520,000 805,000