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The post-closing trial balance of Storey Corporation at December 31, 2020, contains the following stockholders' equity accounts: Stockholders' Equity Section Preferred stock (15,000 shares issued) $ 750,000 Common Stock (250,000 shares issued) 2,500,000 Paid-in capital in excess of par-Preferred stock 250,000 Paid-in capital in excess of par-Common stock 400,000 Common stock dividends distributable 250,000 Retained earings 1,042,000 A review of the accounting records reveals the following: 1) Preferred stock is %50 par, 6%, and cumulative; 15,000 shares have been outstanding since January 1, 2019. 2) Authorized stock is 20,000 shares of preferred, and 500,000 shares of $10 par value common 3) The January 1 balance in Retained Eamings was $1,170,000 4) Net income for the year was $585,000. The following transactions occurred during the year: 1-Jul 20,000 shares of common stock were issued for cash at $16 per share A cash dividend of $250,000 was declared and properly 1-Oct| allocated to preferred and common stock on October 1. The payment date was determined to be Oct. 30. A 10% common stock dividend was declared out of retained 31-Dec eamings on common stock when the market price per share was $16. Requirements: 1) Journalize the transaction and the closing entries for net income 2) Compute the allocation of the cash dividend to preferred and common stock. 3) Prepare the stockholders' equity section of the balance sheet as at December 21.2020

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