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 (240,900 shares issued) Paid-in Capital in Excess of Par-Preferred Stock Paid-in Capital in Excess of Par-Common Stock Common Stock Dividends Distributable $710,000 3,372,600 244,200 406,400 337,260 937,750 Retained Earnings A review of the accounting records reveals the following 1. 2. 3. 4. 5. 6. No errors have been made in recording 2015 transactions or in preparing the closing entry for net income Preferred stock is $50 par, 6%, and cumulative; 14,200 shares have been outstanding since January 1, 2014 Authorized stock is 19,200 shares of preferred, 481,800 shares of common with a $14 par value The January 1 balance in Retained Earnings was $1,153,800 On July 1, 18,500 shares of common stock were issued for cash at $17 per share On September 1, the company discovered an understatement error of $89,800 in computing depreciation in 2014, which overstated net income. The net of tax effect of $62,860 was properly debited directly to Retained Earnings. A cash dividend of $337,260 was declared and properly allocated to preferred and common stock on October 1. No dividends were paid to preferred stockholders in 2014 7. 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 $17 9. Net income for the year was $593,600. 10. On December 31, 2015, the directors authorized disclosure of a $190,400 restriction of retained earnings for plant expansion. (Use Note X.) Your answer is partially correct. Try again. Reproduce the Retained Earnings account for 2015. (List items in order presented in the problem.) Retained Earnings Sept. 1 Prior Per. Adj. 62,860 10Jan. 1 Balance 337,260Dec. 31 Net Income 406,400 1,153,800 Dec. 31 Cash Dividends 593,600 Dec. 31 Stock Dividends Dec. 31 Balance 937,750 Your answer is correct. Prepare a retained earnings statement for 2015. (List items that increase retained earnings first.) STOREY CORPORATION Retained Earnings Statement For the Year Ended December 31, 2015 Balance, January 1, as reported 1,153,800 Correction of Overstatement of 2014 Net Income 62,860 Balance, January 1, as adjusted 1,090,940 593,600 1,684,540 Add + Net Income/ (Loss) Less 337,260 Cash Dividends Stock Dividends 409,530 746,790 937,750 Balance, December 31 Prepare a stockholders' equity section at December 31, 2015. (Enter account name only and do not provide descriptive information.) STOREY CORPORATION Partial Balance Sheet December 31, 2015