question 9 unit 8

The post-closing trial balance of Pharoah Corporation at December 31,2022 , contains the following stockholders' equity accounts. A review of the accounting records reveals the following 1. No errors have been made in recording 2022 transactions of in preparins the dosing entry for net income. 2. Preferred stock is 550 par, 6% and cumulative: 15,200 shares have becon outstanding since January 1,2021. 3. Authorized stock is 20,200 shares of preferred, 516,000 shares of common with as 10 par value. 4. The lanuarvat balance in Retainedf Farrines was 51.190000 4. The January 1 balance in Retained Earnings was $1,190,000. 5. On July 1, 20,700 shares of common stock were issued for cash at $18 per share. 6. On September 1, the company discovered an understatement error of $85.900 in computing salaries and wages expense in 2021. The net of tax effect of $60,130 was properly debited directly to Retained Earnings. 7. A cash dividend of $258,000 was declared and properly allocited to preferred and common stock on October 1 . No dividends were paid to preferred stockholders in 2021. 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. 9. Net income for the year was $561,000. 10. On December 31.2022, the directors authorized disclosure of a $203,000 restriction of retained eamings for plant expansion. (Use Note X) Reproduce the Retained Earnings account for 2022. (Uist items in order presented in the problem.) Prepare a stockhoiders' equity section at December 31,2022. (Enter occount name only and do not provide descriptive information) 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