8Blam 14-02A a-c (Part Level Submission) PRINTER VERSION BACK NEXT The post-closing trial balance of Sheridan Corporation at December 31, 2020, contains the felowing stocknelders equity acunts Preferred Stock (16,000 shares issued) Common Stock (259,000 shares issued) Paid-in Capital in Excess of Par-Preferred Stock Paid-in Captal in Excess of Par-Common Stock $800,000 2,590,000 259,000 410,000- Common Stock Dividends Distributable 259,000 Retained Eamings 921,900 A review of the accounting records reveals the following No errors have been made in recording 2020 transctions or in preparing the closing entry for net income 1. Preferred stock is $50 par, 6% , and cumulative; 16,000 shares have been outstanding since January 1, 2019 Authorized stock is 21,000 shares of preferred, 518,000 shares of common with a $10 par value The January 1 balance in Retained Earnings was $1,120,000. 2. 3. 4. On July 1, 21,600 shares of common stock were issued for cash at $18 per share. On September 1, the company discovered an understatement error of $87,000 in computing salaries and wages expense in 2019 The net of tax effect of $60,900 was properly debited directy to Retained Earnings A cash dividend of $259,000 was declared and properly allocated to preferred and common stock on October 1. No dividends were paid to prefered stockholders in 2019. On December 31, a 10% common stock dividend was declared out of retained earnings on common stock whene market price per share was $18 6. 7. 8. 9 Net Income for the year was $588,000. On December 31, 2020, the directors authorized disclosure of a $193,000 restriction of retained earnings for plant expansion (Use Note X) 10. (a) Your answer is correct Reproduce the Retained Eanings account for 2020. (List items in order presented in the problem.) Retained Eamings 1.120,000 60,900 Sept. 1 Prior Per Adj Jan. 1 Balance 588,000 259,000 Dec. 31 Net Income Dec. 31 Cash Dividends 466200 ctock neidennst CALCULATOR PRINTER VERSON (a) BACK NEXT Your answer is correct Reproduce the Retained Eanings account for 2020. (List tems in order presented in the problem.) Retained Earnings Sept. 1 Prior Per. Adj. 60,900Jan. 1 Balance 1,120,000 Dec. 31 Cash Dividends 259,000 Dec. 31 Net Income 588,000 Dec. 31 Stock Dividends 466200 Dec. 31 Balance 921900 Click if you would like to Show Work for this question: Open Show Work SHOW LIST OF ACCOUNTS LINK TO TEXT LINK TO TEXT Attempts: 2 of 3 used (b) Prepare a stockholders eouity section at December 31, 2020. (Enter account name only and do not provide descriptve information) SHERIDAN CORPORATION Partial Balance Sheet ? B. WX MacBook Pro CALCULATOR PRINTER VERSION NEXT BACK (b) Prepare a stockholders equity section at December 31, 2020. (Enter account name anly and do not provide descriptive Information.) SHERIDAN CORPORATION Partial Balance Sheet n) Click if you would like to Show Work for this question: gosn Shew wack