PART D

Problem 11-SA (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 Dividends 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 errors 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 with a $11 par value. 4. The January 1 balance in Retained Earnings was $1,151,300 n eebe , he coman vered an underslatement ero f 191,40 computing degreclation in 2014, which overstated net Income. The net of tax elfect 6. On September 1, the company discovered an understatement error of $91,400 in computing depreciation in 2014, which overstated net income. The net of tax effect of $63,980 was properly debited directly to Retained Earnings A cash dividend 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, On December 31, a 10% common stock dividend was declared out of retained earnings on common stock when the market price per share was sz Net income for the year was $551,600. On December 31, 2015, the directors authorized disclosure of a $207,300 restriction of retained earnings for plant expansion. (Use Note X.) 7. B. 9. 10- STOREY CORPORATION Partial Balance Sheet December 31, 2015 Stockholders' Equity Pald-in Capital Capital Stock 710000 Preferred Stock Common Stock Common Stock Dividend 2684000 268400 2952400 Total Capital Stock 3662400 Additional Pald-in Capital Paid-in Capital in Excess Paid-in Capital in Excess Total Additional Paid-in Capital Total Pald-in Capital 257300 416900 674200 4336600 955720 5292320 Total Stockholders' Equity (d) Compute the allocation Collapse question part o preferred and common stock. Allocation of the cash dividend to preferred stock Allocation of the cash dividend to common stock LIST OF ACCOUNTS