The post-closing trial balance of Pharoah Corporation at December 31, 2022, contains the following stockholders' equity accounts Preferred Stock (14,000 shares issued) $700,000 Common Stock (240,000 shares issued) 3,600,000 Paid-in Capital in Excess of Par-Preferred Stock 240,000 Paid-in Capital in Excess of Par-Common Stock 410,000 Common Stock Dividends Distributable 360,000 Retained Earnings 934,820 A review of the accounting records reveals the following Preferred stock is $50 par, 6%, and cumulative; 14,000 shares have been outstanding since January 1, 2021. 1 No errors have been made in recording 2022 transactions or in preparing the closing entry for net income. 2 3. 4. The January 1 balance in Retained Earnings was $1,170,000 5. 6. 7. 8. 10. Authorized stock is 19.000 shares of preferred, 480,000 shares of common with a $15 par value On July 1, 18.100 shares of common stock were issued for cash at $16 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 $360,000 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 $16 Net Income for the year was $570,000 On December 31, 2022. the directors authorized disclosure of a $190,000 restriction of retained earnings for plant expansion. (Use Note X) (a) Reproduce the Retained Earnings account for 2022. (List items in order presented in the problem.) Retained Earnings