The post-closing trial balance of Wildhorse Corporation at December 31, 2022, contains the following stockholders’ equity accounts.Preferred Stock (15,800 shares issued) 790,000Common stock (260,000 shares issued) 2,600,000Paid-in Capital in Excess of Par – Preferred Stock 260,000Paid-in Capital in Excess of Par-Common Stock 388,000Common Stock Dividends Distributable 260,000Retained Earnings 992,320-A review of the accounting records reveals the following.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; 15,800 shares have been outstanding since January 1, 2021.Authorized stock is 20,800 shares off preferred, 520,000 shares of common with a $10 par value.The January 1 balance in Retained Earnings was $1,190,000.On July 1, 19,400 shares of common stock were issued for cash at $18 per share.On September 1, the company discovered an understatement error of $92,400 in computing salaries and wages expense in 2021. The net of tax effect of $64,680 was properly debited directly to Retained Earnings.A cash dividend of $260,000 was declared and properly allocated to preferred and common stock on October1. 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 $595,000.On December 31, 2022, the directors authorized disclosure of a $208,000 restriction of retained earnings for plant expansion. (Use Note X) Complete two picturs and Compute the allocation of the cash dividend to preferred and common stock.Allocation of the cash dividend to preferred stock $enter a dollar amount Allocation of the cash dividend to common stock (a)Reproduce the Retained Earnings account for 2022. (List items in order presented in the problem.)Retained Earnings> Prepare a stockholders' equity section at December 31, 2022. (Enter account name only and do not provide descriptive information.)WILDHORSE CORPORATIONPartial Balance Sheet$$>>>>>>

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Answered: The post-closing trial balance of…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

The post-closing trial balance of Wildhorse Corporation at December 31, 2022, contains the following stockholders’ equity accounts.

Preferred Stock (15,800 shares issued) 790,000

Common stock (260,000 shares issued) 2,600,000

Paid-in Capital in Excess of Par – Preferred Stock 260,000

Paid-in Capital in Excess of Par-Common Stock 388,000

Common Stock Dividends Distributable 260,000

Retained Earnings 992,320

A review of the accounting records reveals the following.

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; 15,800 shares have been outstanding since January 1, 2021.
Authorized stock is 20,800 shares off preferred, 520,000 shares of common with a $10 par value.
The January 1 balance in Retained Earnings was $1,190,000.
On July 1, 19,400 shares of common stock were issued for cash at $18 per share.
On September 1, the company discovered an understatement error of $92,400 in computing salaries and wages expense in 2021. The net of tax effect of $64,680 was properly debited directly to Retained Earnings.
A cash dividend of $260,000 was declared and properly allocated to preferred and common stock on October1. 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 $595,000.
On December 31, 2022, the directors authorized disclosure of a $208,000 restriction of retained earnings for plant expansion. (Use Note X)

Complete two picturs and

Compute the allocation of the cash dividend to preferred and common stock.

Allocation of the cash dividend to common stock
Allocation of the cash dividend to preferred stock		$enter a dollar amount

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

Prepare a stockholders' equity section at December 31, 2022. (Enter account name only and do not provide descriptive information.)
WILDHORSE CORPORATION
Partial Balance Sheet
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