Problem 14-02A a-c The post-closing trial balance of Carla Vista Corporation at December 31, 2020, contains the following stockholders' equity accounts. Preferred Stock (15,500 shares issued) Common Stock (259,000 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 $775,000 3,885,000 259,000 407,000 388,500 845,800 A review of the accounting records reveals the following 1 No errors have been made in recording 2020 transactions or in preparing the closing entry for net income. 2. Preferred stock is S50 par, 6%, and cumulative; 15,500 shares have been outstanding since January 1, 2019 3. Authorized stock is 20,500 shares of preferred, 518,000 shares or common with a $15 par value. 4. The January 1 balance in Retained Earnings was $1,120,000 5. On July 1, 19,200 shares of common stock were issued for cash at $16 per share. 6. On September 1, the company discovered an understatement error of $89,000 in computing salaries and wages expense in 2019. The net or tax errect or 62,300 was properly debited directly to Retained Earnings. 7. A cash dividend of $388,500 was declared and properly allocated to preferred and common stock on October 1. No dividends were paid to preferred stockholders in 2019 8. on December 31, a 10% common stock dividend was declared out or retained earnings on common stock when the market price per share was 16. 9 Net income for the year was $591,000. 10 On December 31, 2020, the directors authorized disclosure of a $194,000 restriction of retained earnings for plant expansion. (Use Note X.) Reproduce the Retained Earnings account for 2020. (List items in order presented in the problem.)

Prepare a stockholders' equity section at December 31, 2020. (Enter account name only and do not provide descriptive information.) CARLA NISTACORPORATION Partial Balance Sheet LIST OF ACCOUNTS Compute the allocation of the cash dividend to preferred and common stock. Allocation of the cash dividend to preferred stock llocation of the cash dividend to common stock

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