PART C

Problem 11-5A (Part Level Submission) The post-closing trial balance of Storey Corporation at December 31, 2015, contains the following stockholders equity accounts Preferred Stock (14,200 shares issued) Common Stock (244,000 shares issued) Paid-in Capital in Excess of Par-Preferred Stock Paid-in Capital in Excess of Par-Common Stock Common Stock Div dends Distributable Retained Earnings $710,000 2,684,000 257,300 416,900 268,400 955,720 A review of the accounting records reveals the following 1. No erors have been made in recording 2015 transactions or in preparing the closing entry for net income. 2. Preferred stock is $50 par, 6%, and cumulative, 14,200 shares have been outstanding since January 1, 2014. 3. Authorized stock is 19,200 shares of preferred, 488,000 shares of common witha $11 par value. 4. The January 1 balance in Retained tarnings was $1,151,300 5. On July 1, 19,900 shares of common stock were issued for cash at $17 per share. 6. On September 1, the company discovered an understatement error of $91,400 in computing depreciation in 2014, which overstated net income. The net o tax effect of $63,980 was properly debited directly to Retained Earnings 7. A cash dvidend of $268,400 was declared and properly allocated to preferred and common stock on October 1. No dividends were paid to preferred stockholders in 2014 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 s 17 9. Net income for the year was $551,600. 10. On December 31, 2015, the directors authorized disclosure of a $207,300 restriction of retained earnings for plant expansion. (Use Note X.) Your answer is correct. Reproduce the Retained Eamings account for 2015. (List items in order presented in the problem) 31 Stock Your answer is correct. Prepare a retained earnings statement for 2015. (List items that increase retained earnings first.) STOREY CORPORATION For the Year Ended December 31, 2015 1151300 of 2014 Net Income 63980 Prepare a stockholders equity section at December 31, 2015. (Enter account name only and do not provide descriptive infermation.) Partial Balance Sheet PART C