View Policies Show Attempt History Current Attempt in Progress The post-closing trial balance of Pharoah Company at December 31, 2022, contains the following stockholders' equity accounts. Preferred Stock (15,100 shares issued) $755,000 Common Stock (244,000 shares issued) 3,660,000 Pald-in Capital in Excess of Par --Preferred Stock 247.000 Paid-in Capital in Excest of Par-Common Stock 400,000 Common Stock Dividends Distributable 366,000 Retained Earnings 892,000 A review of the accounting records reveals the following 1. 2 3. 4. 5. 6. No errors have been made in recording 2022 transactions or in preparing the closing entry for net income Preferred stock is $50 par, 6% and cumulative: 15,100 shares have been outstanding since January 1, 2021 Authorized stock is 20,100 shares of preferred 488,000 shares of common with a $15 par value The January 1 balance in Retained Earnings was $1,165.000 On July 1, 22,000 shares of common stock were issued for cash at $18 per share On September 1, the company discovered an understatement error of $90.000 in computing depreciation in 2019 which overstated net income. The net of tax effect of $63,000 was properly debited directly to Retained Earnings A cash dividend of $366,000 was declared and properly allocated to preferred and common stock on October 1. No dividends were paid to preferred stockholders in 2021. On December 31, a 10% common stock dividend was declared out of retained earnings on common stock when the market price per share was 518 Net Income for the year was $595,200, On December 31, 2022, the directors authorized disclosure of a $193,000 restriction of retained earnings for plant expansion. (Use Notex) 7 8. 9. 10 Pharoah Company Partial Balance Sheet $ $ Question 19 of 19 23.27 / 40 6 7 B On September 1, the company discovered an understatement error of 90,000 in computing depreciation in 2019, which overstated net income. The net of tax effect of $63,000 was properly debited directly to retained Earnings A cash dividend of $366,000 was declared and properly allocated to preferred and common stock on October 1. No dividends were paid to preferred stockholders in 2021 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 Net income for the year was $595.200 On December 31, 2022. the directors authorized discosure of a $193,000 restriction of retained earnings for plant expansion (Use Note X) 9. 10 Your Answer Correct Answer (Used) Reproduce the Retained Earnings account (T-account for 2022. (List items in order presented in the problem.) Retained Earnings Jan 1 Balance Sept. 1 Prior Per Adi 63.000 165.000 Dec 31 Cash Dividends 366.000 Dec 31 Net Income 594200 Dec 31 Stock Dividends 9.200 Dec 31 Balance YO (b) Your answer is partially correct Prepare a stockholders equity section at December 31, 2022. (Enter account name only and do not provide descriptive . Information) Pharoah Company Partial Balance Sheet December 31, 2022 information) Pharoah Company Partial Balance Sheet December 31, 2022 Stockholders' Equity Pald-in Capital Capital Stock Preferred Stock 755000 Common Stock 3660000 Common Stock Dividends Distributable 366000 3294000 Total Capital Stock 4049000 Additional Paid-in Capital Paid-in Capital in Excess of Par-Common Stock 408000 Paid-in Capital in Excess of Par-Preferred Stock 247000 655000 Total Additional Pald-in Capital Additional Paid-in Capital DOME Retained Earnings 892000 Total Stockholders' Equity e Textbook and Media List of Accounts Assistance Used Save for Later Attempts: 5 of 10 used Submit
