14-3A

S w 31, 2017, contains the following stockholders' equity accounts. Preferred Stock (14,000 shares issued) Common Stock (240,000 shares issued) Paid-in Capital in Excess of Paid-in Capital in Excess of Common Stock Dividends Distributable Retained Earnings $700,000 3,600,000 240,000 410,000 360,000 934,820 A review of the accounting records revea's the following. 1 . No errors have been made in recording 2017 transactions or in preparing the closing entry for net income. 2. Preferred stock is S50 par, 6%, and cumulative; 14,000 shares have been outstanding since January 1, 2016. 3. Authorized stock is 19,000 shares of preferred, 480,000 shares of common with a $15 par value. 4 The January 1 balance in Retained Earrings was $1,170,000. 5. On July 1, 18,100 shares of common stock were issued for cash at $16 per share. 6. On September 1, the company discovered an understatement error of $87,400 in computing sataries and wages expense in 2016. The net of tax effect of $61,180 was properly debited directly A cash dividend of $360,000 was declared and property allocated to preferred and common stock on October 1. No dividends were paid to preferred stockholders 2016. 7- 8. On 31, a 10% common stock dividend was dedared out of retained earnings on common stock when the market price per share was $16. 10. On December 31, 2017, the directors the Retained Earnings account for 2017. (List items in order presented in the probiem. Version 4.2445