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Retained Earnings Statement

Rolt Company began $2019$ with a $$135,000$ balance in retained earnings. During the year, the following events occurred:

The company earned net income of $$82,000.$

A material error in net income from a previous period was corrected. This error correction increased retained earnings by $$8,260$ after related income taxes of $$4,200.$

Cash dividends totaling $$11,500$ and stock dividends totaling $$19,500$ were declared.

One thousand shares of callable preferred stock that originally had been issued at $$110$ per share were recalled and retired at the beginning of $2019$ for the call price of $$115$ per share.

Treasury stock $($common$)$ was acquired at a cost of $$18,000.$ State law requires a restriction of retained earnings in an equal amount. The company reports its retained earnings restrictions in a note to the financial statements.

This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below.

Open spreadsheet

Required:

Prepare a statement of retained earnings for the year ended December $31,2019.$

ROLT COMPANY

Statement of Retained Earnings

For Year Ended December $31,2019$

Retained earnings, as previously reported, January $1,2019$