Rolt Company began 2013 with $135,000 balance retained earnings. During the yet, the following event occurred:

1. the company earned net income of $70,000 2. A material error in net income from previous period was corrected. The error correction increased retained earnings by $8,960 after related income taxes of $3,840. 3. Cash dividends totalling $10,500 and stock dividends totaling $19,000 was declared. 4. One thousand shares of callable preferred stock that originally had been issued at $115 per share were recalled and retired at the beginning of 2013 for the call price of $125 per share. 5. Treasury stock (common) was acquired at a cost of $21,000. State law requires a restriction of retained earnings in an equal amount. The company reports it's retained earnings restrictions in a note to the financial statement.

Required :

1. prepare a statement of retained earnings for the year ended December 31, 2013.