Stargazer Lily was incorporated on July 1, 2021 by 10 shareholders who each invested $100,000 in cash in exchange for common shares. Stargazer Lily's year end is June 30th. In its first year of business Stargazer Lily had a net income of $243,750. For its years ended June 30, 2022 and 2023, its second and third years of operation, Stargazer Lily reported net income of $472,500 and $560,000 respectively. In its first year Stargazer Lily did not pay any dividends, but in fiscal 2021 it paid $62,500 in dividends and in 2022 it paid $100,000 in dividends.

Required

1. Prepare a Statement of Retained Earnings for the year ended June 30, 2023.