25.32 / 40 Question 19 of 19 View Policies Show Attempt History Current Attempt in Progress The post-closing trial balance of Pharoah Company at December 31, 2022. contains the following stockholders equity accounts. $755,000 Preferred Stock (15,100 shares issued) Common Stock (244,000 shares issued) 3,660,000 247,000 Pald-in Capital in Excess of Par-Preferred Stock 408,000 366,000 Paid-in Capital in Excess of Par-Common Stock Common Stock Dividends Distributable Retained Earnings 892,000 A review of the accounting records reveals the following 1 2 3. 4. 5. 6. No errors have been made in recording 2022 transactions or in preparing the closing entry for net income Preferred stock is $50 par, 6%, and cumulative; 15.100 shares have been outstanding since January 1, 2021 Authorized stock is 20.100 shares of preferred, 488,000 shares of common with a $15 par value: The January 1 balance in Retained Earnings was $1,165,000 On July 1, 22,000 shares of common stock were issued for cash at $18 per share On September 1, the company discovered an understatement error of $90,000 in computing depreciation in 2019, which overstated net income. The net of tax effect of $63,000 was properly debited directly to Retained Earnings, A cash dividend of $366,000 was declared and properly allocated to preferred and common stock on October 1. No dividends were paid to preferred stockholders in 2021. On December 31, a 10% common stock dividend was declared out of retained earnings on common stock when the market price per share was $18. Net income for the year was $595,200. On December 31, 2022, the directors authorized disclosure of a $193,000 restriction of retained earnings for plant expansion (Use Note X) 7. 8 9. 10. Your Answer Correct Answer (Used) Prepare a stockholders equity section at December 31, 2022. (Enter account name only and do not provide descriptive information.) Pharoah Company Partial Balance Sheet December 31, 2022 Stockholders Equity Pald-in Capital Capital Stock $ 735100 Preferred Stock Common Stock 3.660 000 Common Stock Dividends Distributable 366,000 406.000 482000 Total Capital Stock Additional Paid-in Capital 200.000 Pald-in Capital in Excess of Par-Common Stock 247.000 Pald-in Capital in Excess of Par Preferred Stock 655.000 Total Additional Pald-in Capital 5436.000 Total Pald-in Capital 293 000 Retained Emings 328.000 Total Stockholders' Equity (c) X Your answer is incorrect. Compute the allocation of the cash dividend to preferred and common stock Allocation of the cash dividend to preferred stock $ 906 Allocation of the cash dividend to common stock 396000 eTextbook and Media List of Accounts Atomnt 2 of 1nused