Current Attempt in Progress The post-closing trial balance of Crane Corporation at December 31, 2022, contains...

Transcribed Image Text:

Current Attempt in Progress The post-closing trial balance of Crane Corporation at December 31, 2022, contains the following stockholders' equity accounts. Preferred Stock (14,300 shares issued) $715,000 Common Stock (244,000 shares issued) 3,660,000 Paid-in Capital in Excess of Par-Preferred Stock 244,000 Paid-in Capital in Excess of Par-Common Stock 417,000 Common Stock Dividends Distributable Retained Earnings 366,000 848,960 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. 3. Preferred stock is $50 par, 6%, and cumulative; 14,300 shares have been outstanding since January 1, 2021. Authorized stock is 19,300 shares of preferred, 488,000 shares of common with a $15 par value. 4. The January 1 balance in Retained Earnings was $1,110,000. 5. On July 1, 20,500 shares of common stock were issued for cash at $16 per share. 6. 7. 8. On September 1, the company discovered an understatement error of $85,200 in computing salaries and wages expense in 2021. The net of tax effect of $59,640 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 $16. 9. Net income for the year was $555,000. 10. On December 31, 2022, the directors authorized disclosure of a $191,000 restriction of retained earnings for plant expansion. (Use Note X.) (a) Retained Earnings Reproduce the Retained Earnings account for 2022. (List items in order presented in the problem.) > > Current Attempt in Progress The post-closing trial balance of Crane Corporation at December 31, 2022, contains the following stockholders' equity accounts. Preferred Stock (14,300 shares issued) $715,000 Common Stock (244,000 shares issued) 3,660,000 Paid-in Capital in Excess of Par-Preferred Stock 244,000 Paid-in Capital in Excess of Par-Common Stock 417,000 Common Stock Dividends Distributable Retained Earnings 366,000 848,960 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. 3. Preferred stock is $50 par, 6%, and cumulative; 14,300 shares have been outstanding since January 1, 2021. Authorized stock is 19,300 shares of preferred, 488,000 shares of common with a $15 par value. 4. The January 1 balance in Retained Earnings was $1,110,000. 5. On July 1, 20,500 shares of common stock were issued for cash at $16 per share. 6. 7. 8. On September 1, the company discovered an understatement error of $85,200 in computing salaries and wages expense in 2021. The net of tax effect of $59,640 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 $16. 9. Net income for the year was $555,000. 10. On December 31, 2022, the directors authorized disclosure of a $191,000 restriction of retained earnings for plant expansion. (Use Note X.) (a) Retained Earnings Reproduce the Retained Earnings account for 2022. (List items in order presented in the problem.) > >