The post$-$closing trial balance of Sandhill Corporation at December $31,2022,$ contains the following stockholders' equity accounts.

A review of the accounting records reveals the following.

No errors have been made in recording $2022$ transactions or in preparing the closing entry for net income.

Preferred stock is $$50$ par, $6\%,$ and cumulative; $15,900$ shares have been outstanding since January $1,2021.$

Authorized stock is $20,900$ shares of preferred, $486,000$ shares of common with a $$15$ par value.

The January $1$ balance in Retained Earnings was $$1,200,000.$

On July $1,19,300$ shares of common stock were issued for cash at $$16$ per share.

On September $1,$ the company discovered an understatement error of $$87,200$ in computing salaries and wages expense in

The net of tax effect of $$61,040$ was properly debited directly to Retained Earnings.

A cash dividend of $$364,500$ was declared and properly allocated to preferred and common stock on October $1.$ No

dividends were paid to preferred stockholders in $2021.$

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.$

Net income for the year was $$593,000.$

On December $31,2022,$ the directors authorized disclosure of a $$200,000$ restriction of retained earnings for plant

expansion. $($Use Note X$.)$