6.67 / 40 Question 19 of 19 II 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. Preferred Stock (15.100 shares issued) $755,000 Common Stock (244,000 shares issued 3,660,000 Paid-in Capital in Excess of Par-Preferred Stock 247.000 Pald-In Capital in Excess of Par-Common Stock 408,000 Common Stock Dividends Distributable 366,000 Retained Earnings 892,000 A review of the accounting records reveals the following 1 2. 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 4. 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. 5 6.67 / 40 Question 19 of 19 A review of the accounting records reveals the following 1 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. 2 3 Authorized stock is 20.100 shares of preferred, 488.000 shares of common with a $15 par value 4 5. 6. 7. 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 590,000 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 5366,000 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) 9 10 Question 19 of 19 6.67 / 40 III (a) Your answer is partially correct Reproduce the Retained Earnings account (T-account) for 2022 (List items in order presented in the problem) Retained Earnings Sept. 1 Prior Per. Adj, 63000 Dec 31 Cash Dividends 366000 Dec 31 Stock Dividends 6588000 Dec 31 Net Income e Textbook and Media List of Accounts Attempts: 2 of 10 used Submit Awwe Save for Later