Problem 14-02A a-c The post-closing trial balance of Wildhorse Corporation at December 31, 2020, contains the following stockholders' equity accounts. Preferred Stock (15,800 shares issued) $790,000 2,600,000 Common Stock (260,000 shares issued) Paid-in Capital in Excess of Par-Preferred Stock 260,000 Paid-in Capital in Excess of Par-Common Stock 388,000 Common Stock Dividends Distributable 260,000 Retained Earnings 992,320 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 neet income 2. Preferred stock is $50 par, 6%, and cumulative; 15,800 shares have been outstanding since January 1, 2019 3. Authorized stock is 20,800 shares of preferred, 520,000 shares of common with a $10 par value. The January 1 balance in Retained Earnings was $1,190,000. 4. 5. On July 1, 19,400 shares of common stock were issued for cash at $18 per share. 6 On September 1, the company discovered an understatement error of $92,400 in computing salaries and wages expense in 2019. The net of tax effect of $64,680 was properly debited directly to Retained Earnings A cash dividend of $260,000 was declared and properly allocated to preferred and common stock on October 1. No dividends were paid to preferred stockholders in 2019. 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 $18. Net income for the year was $595,000. 9. On December 31, 2020, the directors authorized disclosure of a $208,000 restriction of retained earnings for plant expansion. (Use Note X.) 10. Your answer is partially correct. Try again Reproduce the Retained Earnings account for 2020. (List items in order presented in the problem.) Retained Earnings 64680.00 Sept. 1 Prior Per. Adj. 1190000.00 Jan. 1 Balance 260000.00 Dec. 31 Cash Dividends 595000.00 Dec. 31 Net Income Dec. 31 Stock Dividends 388000.00 Dec. 31 Balance Prepare a stockholders' equity section at December 31, 2020. (Enter account name only and do not provide descriptive information.) WILDHORSE CORPORATION. Partial Balance Sheet December 31, 2020 Stockholders' Equity Paid-in Capital Capital Stock 790000.00 Preferred Stock 2600000.00 Common Stock 260000.00 Common Stock Dividends Distributable 2860000.00 3650000.00 Total Capital Stock Additional Paid-in Capital 260000.00 Paid-in Capital in Excess of Par-Preferred Stock Paid-in Capital in Excess of Par-Common Stock 388000.00 648000.00 Capital Stock 4298000.00 Total Paid-in Capital Retained Earnings 1072320.00 5370320.00 Total Stockholders' Equity Compute the allocation of the cash dividend to preferred and common stock Allocation of the cash dividend to preferred stock Allocation of the cash dividend to common stock