Create a retained eanrnings account, and a partial balance sheet. The ledger of Sarasota Corp. at December $31,2025,$ after the books have been closed, contains the following stockholders' equity

accounts.

A review of the accounting records reveals this information:

Preferred stock is $7\%,$$$100$ par value, noncumulative. Since January $1,2024,11,400$ shares have been

outstanding; $22,800$ shares are authorized.

Common stock is no$-$par with a stated value of $$7$ per share; $608,000$ shares are authorized.

The January $1,2025,$ balance in Retained Earnings was $$2,284,000.$

On October $1,57,500$ shares of common stock were sold for cash at $$8$ per share.

A cash dividend of $$394,500$ was declared and properly allocated to preferred and common stock on November $1.$ No

dividends were paid to preferred stockholders in $2024.$

Net income for the year was $$889,000.$

On December $31,2025,$ the directors authorized disclosure of a $$164,000$ restriction of retained earnings for plant

expansion. $($Use Note A$.)$