Current Attempt in Progress The post-closing trial balance of Pharoah Company at December 31, 2022.contains the following stockholders equity accounts. $755,000 3,660.000 247,000 Preferred Stock (15,100 shares issued) Common Stock (244,000 shares issued) Pald-in Capital in Excess of Par-Preferred Stock Paid-in Capital in Excess of Par - Common Stock Common Stock Dividends Distributable Retained Earnings 408,000 366,000 892.000 2 3. 5. 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 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. 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) 6. 7 8. 9. 10. (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 166000 Dec 31 Stock Dividends HOME 6588000 Dec 31 Cash Dividends e Textbook and Media List of Accounts Save for Later Attempts: 2 of 10 used Submit