The post-closing trial balance of Whispering Winds Corp. at December 31, 2022, contains the following stockholders equity accounts.

Preferred Stock (14,100 shares issued)		$705,000
Common Stock (254,000 shares issued)		2,540,000
Paid-in Capital in Excess of ParPreferred Stock		240,000
Paid-in Capital in Excess of ParCommon Stock		380,000
Common Stock Dividends Distributable		254,000
Retained Earnings		986,300

A review of the accounting records reveals the following.

1.		No errors have been made in recording 2022 transactions or in preparing the closing entry for net income.
2.		Preferred stock is $50 par, 6%, and cumulative; 14,100 shares have been outstanding since January 1, 2021.
3.		Authorized stock is 19,100 shares of preferred, 508,000 shares of common with a $10 par value.
4.		The January 1 balance in Retained Earnings was $1,140,000.
5.		On July 1, 18,000 shares of common stock were issued for cash at $16 per share.
6.		On September 1, the company discovered an understatement error of $86,000 in computing depreciation in 2019, which overstated net income. The net of tax effect of $60,200 was properly debited directly to Retained Earnings.
7.		A cash dividend of $254,000 was declared and properly allocated to preferred and common stock on October 1. No dividends were paid to preferred stockholders in 2021.
8.		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.
9.		Net income for the year was $566,900.
10.		On December 31, 2022, the directors authorized disclosure of a $195,000 restriction of retained earnings for plant expansion. (Use Note X.)

(a)

Reproduce the Retained Earnings account (T-account) for 2022. (List items in order presented in the problem.)

b. prepare a stockholders equity section at december 31,2020.

c. commute the allocation of the cash dividend to preferred and common stock.