Retained Earnings Statement Rolt Company began 2019 with a $135,000 balance in retained earnings. During the year, the following events occurred: 1. The company eamed net income of $70,000. 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 $13,500 and stock dividends totaling $20,000 were declared. 4. One thousand shares of callable preferred stock that originally had been issued at $120 per share were recalled and retired at the beginning of 2019 for the call price of $125 per share. 5. Treasury stock (common) was acquired at a cost of $17,000. 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