Question 2 1.74/2 View Policies Show Attempt History Current Attempt in Progress The ledger of Blue Spruce Corp. at December 31, 2022, after the books have been closed, contains the following stockholders' equity accounts Preferred Stock (12,300 shares issued) Common Stock (313,000 shares issued) Paid in Capital in Excess of Par Value --Preferred Stock Paid in Capital in Excess of Stated Value-Common Stock Retained Earnings $1,230,000 2,191,000 220,000 1,730,000 2.771,000 A review of the accounting records reveals this information: 1. Preferred stock is 7%, $100 par value, noncumulative. Since January 1, 2021, 12,300 shares have been outstanding: 24,600 shares are authorized 2. Common stock is no par with a stated value of $7 per share: 626.000 shares are authorized. 3. The January 1, 2022. balance in Retained Earnings was $2.293,000. 4. On October 1, 66,500 shares of common stock were sold for cash at 58 per share 5. A cash dividend of $393,000 was declared and properly allocated to preferred and common stock on November 1. No dividends were paid to preferred stockholders in 2021 6. Net income for the year was $871,000. 7. On December 31, 2022, the directors authorized disclosure of a $153,500 restriction of retained earnings for plant expansion (Use Note A) Your Answer Correct Answer Your answer is correct. Reproduce the Retained Earnings account for the year. Retained Earnings Dec 31 393,000 Jan. 1 Balance 2293000 Dec 31 871000 Dec 31 Balance 2771000 e Textbook and Media List of Accounts Attempts: 3 of 3 used BLUE SPRUCE CORP, Partial Balance Sheet December 31, 2022 Stockholders' Equity Preferred Stock 1230000 Common Stock 2191000 Capital Stock $ 3421000 Additional Paid-in Capital Paid-in Capital in Excess of Par Value-Preferred Stock 220000 Pald-in Capital in Excess of Stated Value-Common Stock 1730000 Total Paid in Capital 1950000 Retained Earnings 71000 Preferred Stock 1230000 Common Stock 2191000 Capital Stock 3421000 Additional Paid-in Capital Paid-in Capital in Excess of Par Value-Preferred Stock 220000 Paid-in Capital in Excess of Stated Value-Common Stock 1730000 Total Paid-in Capital 1950000 2771000 Retained Earnings $ 8142000 Total Stockholders' Equity