Retained Earnings Statement

Rolt Company began $2019$ with a $$150,000$ balance in retained earnings. During the year, the following events occurred:

The company earned net income of $$76,000.$

A material error in net income from a previous period was corrected. This error correction increased retained earnings by $$7,770$ after related income taxes of $$3,330.$

Cash dividends totaling $$14,500$ and stock dividends totaling $$18,000$ were declared.

One thousand shares of callable preferred stock that originally had been issued at $$115$ per share were recalled and retired at the beginning of $2019$ for the call price of $$125$ per share.

Treasury stock $($common$)$ was acquired at a cost of $$19,000.$ 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.

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 $1,2019$ $fill in the blank $1$

$-$ Select $-$

Adjusted retained earnings, January $1,2019$ $fill in the blank $4$

$-$ Select $-$

$fill in the blank $7$

$$-$ Select $-$

$-$ Select $-$

$-$ Select $-$

$-$ Select $-$

Retained earnings, December $31,2019$ $fill in the blank $15$