Salt & Pepper, Inc., had retained earnings at the beginning of the current year of $460,000. During the year, the company earned net income of $250,000 and declared dividends as follows.

• $1 per share for the current-year dividend on the 10,000 shares of preferred stock outstanding.
• $1 per share for the dividend in arrears for one year on the 10,000 shares of preferred stock outstanding.
• $0.50 per share for the current-year dividend on the 200,000 shares of common stock outstanding.

In addition, the company discovered an overstatement in the prior years net income of $65,000 and corrected that error in the current year.

Prepare a statement of retained earnings for the year.

SALT \& PEPPER, INC., Statement of Retained Earnings For Year Ended Retained earnings, beginning of year Cost of goods sold Retained earnings, beginning of year, as restated Retained earnings, end of year \begin{tabular}{|rr|} \hline$ & 460,000 \\ \hline & 250,000 \\ \hline$ & 210,000 \\ \hline & \\ \hline$ & 210,000 \\ \hline & \\ \hline & 210,000 \\ \hline \end{tabular}