The Retained Earnings for Blanka Corporation at January 1, 2021 were $250,000. The corporation had 20,000 shares of common stock outstanding during the year 2021.

During the year the following transactions occurred:

The company discovered that it had mistakenly recorded the depreciation expense for 2020 as $24,000 while the correct amount was $22,000.

Declared and paid a cash dividend of $ 1.40 per share.

Declared and distributed a 5% stock dividend when the market price was $14 per share.

Earned a net income of $ 150,000.

Blanka Corporation Retained Earnings Statement For the Year Ended December 31, 2021 $ 250,000 Balance at January 1, as reported Correction of of net income Balance at January 1, as adjusted Add: Net Income Base 150,000 Less: Cash Dividends Stock Dividends Balance at December 31.2021