For the current year ended December 31, the retained earnings accounts of Dermo Corporation, a pharmaceutical company specializing in skin ointments, are as follows:

Appropriation for plant Expansion

Date Item Debit Credit Balance

Debit Credit

1 Jan Balance 250,000

31 Dec Retained Earnings 75,000 325,000

Appropriation for Treasury Stock

Date Item Debit Credit Balance

Debit Credit

1 Jan Balance 375,000

31 Dec Retained Earnings 175,000 200,000

Retained Earnings

Date Item Debit Credit Balance

Debit Credit

1 Jan Balance 715,000

31 Dec Income Summary 185000 900,000

31 Appropriation For Plant

Expansion 75,000 825,000

31 Appropriation For

Treasury Stock 175,000 1,000,000

31 Cash Dividends 100,000 900,000

31 Stock Dividends 150,000 750,000

Cash Dividends

Date Item Debit Credit Balance

Debit Credit

27 July 100,000 100,000

31 Dec Retained Earnings 100,000

Stock Dividends

Date Item Debit Credit Balance

Debit Credit

27 July 150,000 150,000

31 Dec Retained Earnings 150,000

Instructions

Prepare a retained earnings statement for the fiscal year ended Dec 31