The post-closing trial balance of Storey Corporation at December 31, 2017, contains the following stockholders? equity accounts.

Preferred Stock (15,500shares issued)	$775,000
Common Stock (259,000shares 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

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.
2.	Preferred stock is $50par,6%, and cumulative;15,500shares have been outstanding since January 1, 2016.
3.	Authorized stock is20,500shares of preferred,518,000shares of common with a $15par value.
4.	The January 1 balance in Retained Earnings was $1,120,000.
5.	On July 1,19,200shares of common stock were issued for cash at $16per share.
6.	On September 1, the company discovered an understatement error of $89,000in computing salaries and wages expense in 2016. The net of tax effect of $62,300was properly debited directly to Retained Earnings.
7.	A cash dividend of $388,500was declared and properly allocated to preferred and common stock on October 1. No dividends were paid to preferred stockholders in 2016.
8.	On December 31, a10% common stock dividend was declared out of retained earnings on common stock when the market price per share was $16.
9.	Net income for the year was $591,000.
10.	On December 31, 2017, the directors authorized disclosure of a $194,000restriction of retained earnings for plant expansion. (Use Note X.)