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