On January $1,2019,$ Kittson Company had a retained earnings balance of $$218,600.$ It is subject to a $30\%$ corporate income tax rate. During $2019,$ Kittson earned net income of $$67,000,$ and the following events occurred:

Cash dividends of $$3$ per share on $4,000$ shares of common stock were declared and paid.

A small stock dividend was declared and issued. The dividend consisted of $600$ shares of $$10$ par common stock. On the date of declaration, the market price of the company's common stock was $$36$ per share.

The company recalled and retired $500$ shares of $$100$ par preferred stock. The call price was $$125$ per share; the stock had originally been issued for $$110$ per share.

The company discovered that it had erroneously recorded depreciation expense of $$45,000$ in $2018$ for both financial reporting and income tax reporting. The correct depreciation for $2018$ should have been $$20,000.$ This is considered a material error

Required:

Prepare journal entries to record ltems $1$ through $4$

Prepare Kittson's statement of retained earnings for the year ended December $31,2019.$