tne January 1, 2017, balance in Retained Earnings was $2,380,000 4. On October 1,60,000 shares of common stock were sold for cash at $9 per share S. A cash dividend of $400,000 was declared and properly allocated to preferred and common stock on November 1. No dividends were paid to preferred stockholders in 2016. 6. Net income for the year was $880,000. 7. On December 31, 2017, the directors authorized disclosure of a $160,000 restriction of retained earnings for plant expansion. (Use Note A.) Instructions (a) Reproduce the Retained Earnings account (T-account) for the year (b) Prepare the stockholders' equity section of the balance sheet at December 31 P11-5A Layes Corporation has been authorized to issue 20,000 shares of $100 par value, P 7%, noncumulative preferred stock and 1,000,000 shares of no-par common stock. The m corporation assigned a $5 stated value to the common stock. At December 31, 2017, the s ledger contained the following balances pertaining to stockholders' equity. s 150,000 20,000 2,000,000 Preferred Stock Paid-in Capital in Excess of Par Value-Preferred Stock Common Stock P11-5A Layes Corporation has been authorized to issue 20,000 shares of $100 par value, 796, noncumulative preferred stock and 1,000,000 shares of no-par common stock. The corporation assigned a $5 stated value to the common stock. At December 31, 2017, the ledger contained the following balances pertaining to stockholders' equity Pre tra sto (LO Preferred Stock $ 150,000 20,000 2,000,000 Paid-in Capital in Excess of Par Value-Preferred Stock Common Stock