Delta Company reported retained earnings at December 31, 2019, of $500,000. Delta had 300,000 shares of common stock outstanding at the beginning of 2020. The following transactions occurred during 2020. 1. A cash dividend of $300,000 was declared and paid. 2. Corrected understatement of net income due to error in recording depreciation $5,000. 3. A stock dividend of $270,000 was declared and distributed. 4. Net income was $285,000. Required: Prepare a retained earnings statement for the year 2020.