The ledger of Smith Corporation at December 31, 2022, after the books have been closed, contains the following stockholders' equity accounts. Preferred Stock (10,000 shares issued) $1,000,000 Common Stock (300,000 shares issued) 1,500,000 Paid-in Capital in Excess of Par Value-Preferred Stock 200,000 Paid-in Capital in Excess of Stated Value-Common Stock 1,600,000 Retained Eamings 2,860,000 A review of the accounting records reveals this information: 1. Preferred stock is 8%, $100 par value, noncumulative. Since January 1, 2021, 10,000 shares have been outstanding; 20,000 shares are authorized. 2. Common stock is no-par with a stated value of $5 per share; 600,000 shares are authorized 3. The January 1, 2022, balance in Retained Earnings was $2,380,000. 4. On October 1, 60,000 shares of common stock were sold for cash at $9 per share. . 5. A cash dividend of $400,000 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 $880,000. 7. On December 31, 2022, the directors authorized disclosure of a $160,000 restriction of retained earnings for plant expansion. (Use Note A.) Instructions a. Reproduce the Retained Earnings account (T-account) for the year. b. Prepare the stockholders' equity section of the balance sheet at December 31