Copley Company began 2016 with a S300,000 balance in retained earnings. During the year, the following events occurred: 1. The company earned net income of $180,000. 2. A material error in net income from a previous period was discovered and corrected where the company had overstated the revenues by $28,000 after related income tax benefit of $12,000. Cash dividends totaling $15,000 were declared. Stock dividends totaling $18,000 were declared. Treasury stock (common) was acquired at a cost of S35,000. earnings in an equal amount. financial statements. 3. 4. 5. State law requires a restriction of retained The company reports its retained earnings restrictions in a note to the INSTRUCTIONS 1) Prepare a statement of retained earnings for the year ended December 31, 2016 2) Prepare the note to disclose the restriction of retained earnings