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

Preferred Stock (14,800shares issued)$740,000Common Stock (254,000shares issued)3,810,000Paid-in Capital in Excess of ParPreferred Stock254,000Paid-in Capital in Excess of ParCommon Stock398,000Common Stock Dividends Distributable381,000Retained Earnings851,590

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;14,800shares have been outstanding since January 1, 2016.3.Authorized stock is19,800shares of preferred,508,000shares of common with a $15par value.4.The January 1 balance in Retained Earnings was $1,160,000.5.On July 1,18,600shares of common stock were issued for cash at $18per share.6.On September 1, the company discovered an understatement error of $90,300in computing salaries and wages expense in 2016. The net of tax effect of $63,210was properly debited directly to Retained Earnings.7.A cash dividend of $381,000was 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 $18.9.Net income for the year was $593,000.10.On December 31, 2017, the directors authorized disclosure of a $192,000restriction of retained earnings for plant expansion. (Use Note X.)