1. Retained Earnings Statement

   Rolt Company began 2019 with a $100,000 balance in retained earnings. During the year, the following events occurred:

   1. The company earned net income of $81,000.
   2. A material error in net income from a previous period was corrected. This error correction increased retained earnings by $7,910 after related income taxes of $3,390.
   3. Cash dividends totaling $10,000 and stock dividends totaling $16,000 were declared.
   4. One thousand shares of callable preferred stock that originally had been issued at $105 per share were recalled and retired at the beginning of 2019 for the call price of $115 per share.
   5. Treasury stock (common) was acquired at a cost of $20,000. 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
   		fill in the blank 3
   Adjusted retained earnings, January 1, 2019		$fill in the blank 4
   		fill in the blank 6
   		$fill in the blank 7
   	$fill in the blank 9
   	fill in the blank 11
   	fill in the blank 13	fill in the blank 14
   Retained earnings, December 31, 2019		$fill in the blank 15

   Feedback