Critical Thinking 14-05 a The stockholders' equity accounts of Sunland, Inc., at January 1, 2020, are as follows. Preferred Stock, no par, 4,800 shares issued $480,000 Common Stock, no par, 144,000 shares issued 720,000 Retained Earnings 525,000 During 2020, the company had the following transactions and events. July 1 Declared a $0.50 cash dividend per share on common stock. Aug. 1 Discovered a $61,000 overstatement of 2019 depreciation expense. (Ignore income taxes.) Sept. 1 Paid the cash dividend declared on July 1. Dec. 1 Declared a 10% stock dividend on common stock when the market price of the stock was $12 per share. 15 Declared a $8 per share cash dividend on preferred stock, payable January 31, 2021. 31 Determined that net income for the year was $410,000. (a) Determine the retained earnings balance at December 31, 2020 by preparing the retained earnings statement. There are no preferred dividends SUNLAND, INC. Retained Earnings Statement Policy | 2000-2020 John Wiley Sons, Inc. All Rights Reserved. A Division of John Wiley Anne