Problem 14-3A The post-closing trial balance of Storey Corporation at December 31, 2017, contains the following stockholders' equity accounts. Preferred Stock (1S,600 shares issued) Common Stock (253,000 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 $780,000 3,795,000 253,000 386,000 379,500 885,080 A review of the accounting records reveals the following 1 No errors have been made in recording 2017 transactions or in preparing the closing entry for net income. 2. Preferred stock is $50 par, 6%, and cumulative; 15,600 shares have been outstanding since January 1, 2016. 3. Authorized stock is 20,600 shares of preferred, 506,000 shares of common with a $15 par value 4. The January 1 balance in Retained Earnings was $1,140,000 5. On July 1, 19,600 shares of common stock were issued for cash at $16 per share. 6. On September 1, the company discovered an understatement error of $86,600 in computing salaries and wages expense in 2016. The net of tax effect of $60,620 was properly debited directly to Retained Earnings A cash dividend of $379,500 was declared and properly allocated to preferred and common stock on October 1. No dividends were paid to preferred stockholders in 2016. on December 31, a 10% common stock dividend was declared out of retained earnings on common stock when the market price per share was $16 7. 8, 9. Net income for the year was $590,000. 10. On December 31, 2017, the directors authorized disclosure of a $194,000 restriction of retained earnings for plant expansion. (Use Note X.)