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:

1.	Cash dividends of $3 per share on 4,000 shares of common stock were declared and paid.
2.	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 companys common stock was $36 per share.
3.	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.
4.	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:

1.	Prepare journal entries to record Items 1 through 4.
2.	Prepare Kittsons statement of retained earnings for the year ended December 31, 2019.