1. No errors have been made in recording 2022 transactions or in preparing the closing entry for net income. 2. Preferred stock is $50 par, 6\%, and cumulative; 15,600 shares have been outstanding since January 1,2021. 3. Authorized stock is 20,600 shares of preferred, 506,000 shares of common with a $15 par value. 4. The January 1 balance in Retained Earnings was $1,140,000. 5. On July 1,19,600 shares of common stock were issued for cash at $16 per share. 6. On September 1, the company discovered an understatement error of $86,600 in computing salaries and wages expense in 2021. The net of tax effect of $60,620 was properly debited directly to Retained Earnings. 7. A cash dividend of $379,500 was declared and properly allocated to preferred and common stock on October 1. No dividends were paid to preferred stockholders in 2021. 8. On December 31, a 10\% common stock dividend was declared out of retained earnings on common stock when the market price per share was $16. 9. Net income for the year was $590,000. 10. On December 31, 2022, the directors authorized disclosure of a $194,000 restriction of retained earnings for plant expansion. (Use Note X.) Reproduce the Retained Earnings account for 2022. (List items in order presented in the problem.)