The post-closing trial balance of Blossom Corporation at December 31, 2022, contains the following stockholders' equity accounts. Preferred Stock (15,600 shares issued) Common Stock (242,000 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 1. 2. 3. 4. 5. A review of the accounting records reveals the following. 6. 7. 8. $780,000 9. 3,630,000 242,000 388,000 363,000 901,220 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; 15,600 shares have been outstanding since January 1, 2021. Authorized stock is 20,600 shares of preferred, 484,000 shares of common with a $15 par value. The January 1 balance in Retained Earnings was $1,190,000. On July 1, 21,500 shares of common stock were issued for cash at $18 per share. On September 1, the company discovered an understatement error of $87,400 in computing salaries and wages expense in 2021. The net of tax effect of $61,180 was properly debited directly to Retained Earnings. A cash dividend of $363,000 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 $18. Net income for the year was $571,000.

The pont-closing trial balance of tifossom Corporation at Decenber 31.2022, contains the following stociteldeis' equity accounts. A review of the accoursing recoeds reveals the followirs 1. Norrorshare been made in recoidens 2082 tramactions or in greparing the dosing entry for het income- 2. Frefered stock is 550 par, 6%, and cumulatiee: 15,600 hhares fove been evtstanding since lawary 1, 2021. 3. Luthorired stock is 20,600 stures of prefered, 484,000 tures of common with a $15 par whe. 4. The lanuary 1 bulance in Retained tannings was 51,190000 5. On hyy 1,21,500 shares of comwoe stock were awed for cashat $18 per share 6. On September s. the company dicuvered ah understatement error of 587,400 in computing salaries and wages experme in 2001 the net of taxeftect of \$51,1A9 was prepelly debted dectly to Retarned farning: 7. A cash diwidend of 5363000 was declared and properily allocated to prelerred and common tock on October 1. No A carl dividerd of $363000 was occared and propety alo divedends were pad to pretered stocktobiers en 2021 8. On becember 31, a 106 commenstock dividend was declared out of retained earning on comemon Mock alen the Burkit price per shamewas $18. 9. Net income for the year win $571,000 triseger share was 518 9. Net inceine for the vear was 3511.000 . 10. Dn December 31.2022, the derectors Mutherized discbeure of a $208.000 ievtriction of retained earnius for phant eapansiars (Use Fote X ) (a) Heproduce the Retained E arning account for 2092 , fint ilems w ander prexented in the peobical) Compset the discation of the dach dyidend te preferred and commen stish