The post-closing trial balance of Carla Vista Corporation at December 31, 2020, contains the following stockholders' equity accounts. Preferred Stock (15,500 shares issued) $775,000 Common Stock (259,000 shares issued) 3,885,000 Paid-in Capital in Excess of Par-Preferred Stock 259,000 Paid-in Capital in Excess of Par-Common Stock 407.000 Common Stock Dividends Distributable 388,500 Retained Earnings 845,800 1 2 3. 4. 5. A review of the accounting records reveals the following No errors have been made in recording 2020 transactions or in preparing the closing entry for net income. Preferred stock is $50 par, 6%, and cumulative; 15,500 shares have been outstanding since January 1, 2019. Authorized stock is 20,500 shares of preferred, 518,000 shares of common with a $15 par value. The January 1 balance in Retained Earnings was $1,120,000 On July 1, 19,200 shares of common stock were issued for cash at $16 per share. On September 1, the company discovered an understatement error of $89,000 in computing salaries and wages expense in 2019. The net of tax effect of $62,300 was properly debited directly to Retained Earnings A cash dividend of $388,500 was declared and properly allocated to preferred and common stock on October 1. No dividends were paid to preferred stockholders in 2019. 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 $591,000. On December 31, 2020, the directors authorized disclosure of a $194,000 restriction of retained earnings for plant expansion (Use Note X) 6. 7. 8. 9. 10. Reproduce the Retained Earnings account for 2020. (List items in order presented in the problem.) Retained Earnings Sept. 1 Prior Per. Adj. Jan 1Balance 1120000 Dec 31 Cash Dividends Dec. 31 Net Income Dec 31 Stock Dividends Dec. 31 Balance Prepare a stockholders' equity section at December 31, 2020. (Enter account name only and do not provide descriptive information.) CARLA VISTA CORPORATION. Partial Balance Sheet December 31, 2020 Stockholders' Equity Paid-in Capital Preferred Stock Common Stock $ Common Stock Dividends Distributable Total Capital Stock Additional Paid-in Capital Paid-in Capital in Excess of Par-Preferred Stock 259000 DNI Your answer is incorrect. 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 $