The post-closing trial balance of Sheridan Corporation at December 31, 2020, contains the following stockholders equity accounts. $765,000 2,460,000 246,000 Preferred Stock (15,300 shares issued) Common Stock (246,000 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 394,000 246,000 971,520 A review of the accounting records reveals the following. 1 2 3 4. 5 6. 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; 15,300 shares have been outstanding since January 1, 2019. Authorized stock is 20,300 shares of preferred, 492,000 shares of common with a $10 par value. The January 1 balance in Retained Earnings was $1.160,000 On July 1, 18,500 shares of common stock were issued for cash at $18 per share. On September 1, the company discovered an understatement error of 592,400 in computing salaries and wages expense in 2019. The net of tax effect of $64,680 was properly debited directly to Retained Earnings A cash dividend of $246,000 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 $18. Net income for the year was $565.000 On December 31, 2020, the directors authorized disclosure of a $201.000 restriction of retained earnings for plant expansion. (Use Note X) 7 8. 9. 10. * 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 $ List of Accounts