P11.5A (LO 2, 3, 4), AP The post-closing trial balance of Storey Corporation at December 31, 2022, contains the following stockholders equity accounts.

Preferred Stock (15,000 shares issued) $750,000

Common Stock (250,000 shares issued) 2,500,000

Paid-in Capital in Excess of ParPreferred Stock 250,000

Paid-in Capital in Excess of ParCommon Stock 400,000

Common Stock Dividends Distributable 250,000

Retained Earnings 1,105,000

A review of the accounting records reveals the following.

1. No errors have been made in recording 2022 transactions or in preparing the closing entries.
2. Preferred stock is $50 par, 6%, and cumulative; 15,000 shares have been outstanding since January 1, 2021.
3. Authorized stock is 20,000 shares of preferred, 500,000 shares of common with a $10 par value.
4. The January 1 balance in Retained Earnings was $1,170,000.
5. On July 1, 20,000 shares of common stock were issued for cash at $16 per share.
6. A cash dividend of $250,000 was declared and properly allocated to preferred and common stock on October 1. No dividends were paid to preferred stockholders in 2021.
7. On December 31, a 10% common stock dividend was declared out of retained earnings on common stock when the market price per share was $16.
8. Net income for the year was $585,000.
9. On December 31, 2022, the directors authorized disclosure of a $200,000 restriction of retained earnings for plant expansion. (Use Note X.)

Instructions

1. Reproduce the Retained Earnings account (T-account) for 2022.
2. Prepare the stockholders equity section at December 31, 2022.

• Total stockholders equity $5,255,000

3. Compute the allocation of the cash dividend to preferred and common stock.