The post-closing trial balance of Storey Corporation at December 31, 2017, contains the following stockholders' equity accounts. Preferred Stock (15,800 shares issued) Common Stock (260,000 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 $790,000 2,600,000 260,000 388,000 260,000 992,320 A review of the accounting records reveals the following 1. No errors have been made in recording 2017 transactions or in preparing the closing entry for net income 3. 4. 5. 6. Preferred stock is $50 par, 696, and cumulative; 15,800 shares have been outstanding since January 1, 2016. Authorized stock is 20,800 shares of preferred, 520,000 shares of common with a $10 par value The January 1 balance in Retained Earnings was $1,190,000. On July 1, 19,400 shares of common stock were issued for cash at $18 per share On September 1, the company discovered an understatement error of $92,400 in computing salaries and wages expense in 2016. The net of tax effect of $64,680 was properly debited directly to Retained Earnings. 7. A cash dividend of $260,000 was declared and properly allocated to preferred and common stock on October 1. No dividends were paid to preferred stockholders in 2016 B. 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. 9. Net income for the year was $595,000 10. On December 31, 2017, the directors authorized disclosure of a $208,000 restriction of retained earnings for plant expansion. (Use Note X.)