FILL IN PART A

The postclosing trial balance of Wildhorse Co. at December 31, 2022, contains the following stockholders' equity accounts. Preferred Stock (15,700 shares issued) $785,000 Common Stock (246,000 shares issued) 2,706,000 Paid-in Capital in Excess of ParPreferred Stock 248,000 Paid-in Capital in Excess of ParCommon Stock 404,000 Common Stock Dividends Distributable 270,600 Retained Earnings 975,600 A review of the accounting records reveals the following. 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; 15,700 shares have been outstanding since January 1,2021. Authorized stock is 20,700 shares of preferred, 492,000 shares of common with a $11 par value. The January 1 balance in Retained Earnings was $1,160,000. On July 1, 18,000 shares of common stock were issued for cash at $18 per share. P'P'PWN!' On September 1, the company discovered an understatement error of $87,000 in computing depreciation in 2019, which overstated net income. The net of tax effect of $60,900 was properly debited directly to Retained Earnings. 7. A cash dividend of $270,600 was declared and properly allocated to preferred and common stock on October 1. No dividends were paid to preferred stockholders in 2021. 8. 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. 9. Net income for the yearwas $589,900. 10. On December 31, 2022, the directors authorized disclosure of a $198,000 restriction of retained earnings for plant expansion. (Use Note X.) (a) Reproduce the Retained Earnings account (Taccount) for 2022. (List items in order presented in the problem.) Retained Earnings V V V V V V