(a) Your answer is correct. Reproduce the Retained Earnings account for the year. Retained Earnings Dec. 31 397000 Jan. 1 Balance Dec. 31 855000 Dec. 31 Balance 2799000 Problem 11-4A (Part Level Submission) The ledger of Flint Corporation at December 31, 2017, after the books have been closed, contains the following stockholders' equity accounts. Preferred Stock (12,300 shares issued) Common Stock (292,000 shares issued) Paid-in Capital in Excess of Par Value Preferred Stock Paid-in Capital in Excess of Stated Value-Common Stock Retained Earnings $1,230,000 1,752,000 200,000 1,680,000 2,799,000 A review of the accounting records reveals this information: Preferred stock is 8%, $100 par value, noncumulative, since January 1, 2016, 12,300 shares have been outstanding; 24,600 shares are authorized Common stock is no-par with a stated value of $6 per share; 584,000 shares are authorized. The January 1, 2017, balance in Retained Earnings was $2,341,000 On October 1, 60,000 shares of common stock were sold for cash at $10 per share. A cash dividend of $397,000 was declared and properly allocated to preferred and common stock on November 1. No dividends were paid to preferred stockholders in 2016 Net income for the year was $855,000 On December 31, 2017, the directors authorized disclosure of a $151,000 restriction of retained earnings for plant expansion. (Use Note A.) 1. 2. 3. 4. 5. 6. 7. (b) Prepare the stockholders' equity section of the balance sheet at December 31. FLINT CORPORATION Partial Balance Sheet