The post-closing trial balance of Crane Corporation at December 31, 2022, contains the following stockholders' equity accounts.
Preferred Stock (14,500 shares issued)
$725,000
Common Stock (255,000 shares issued)
3,825,000
Paid-in Capital in Excess of Par-Preferred Stock
255,000
Paid-in Capital in Excess of Par-Common Stock
413,000
Common Stock Dividends Distributable
Retained Earnings
382,500
890,400
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; 14,500 shares have been outstanding since January 1, 2021.
Authorized stock is 19,500 shares of preferred, 510,000 shares of common with a $15 par value.
4.
The January 1 balance in Retained Earnings was $1,170,000.
5.
On July 1, 18,700 shares of common stock were issued for cash at $16 per share.
6.
On September 1, the company discovered an understatement error of $93,000 in computing salaries and wages expe
2021. The net of tax effect of $65,100 was properly debited directly to Retained Earnings.
allocated to preferred and
ock on October 1 No