The shareholders equity accounts of Coil Welding Corporation (follows ASPE) on January 1, 2020, are as follows:

Preferred Shares, 8,000 shares issued $400,000

Common Shares, 360,000 shares issued 900,000

Retained Earnings 497,000

During 2020, the company had the following transactions and events:

July 1 Declared a $.25 cash dividend per common share.

Aug. 1 Discovered a $42,000 overstatement of the 2019 depreciation of equipment. (Ignore income taxes.)

Sept. 1 Paid the cash dividend declared on July 1.

Dec. 1 Declared a 5% common share dividend when the market value of the common shares was $8 per share.

15 Declared a $4.50 cash dividend per preferred share.

31 Profit for the year was $472,000.

Instructions:

Prepare a statement of retained earnings for the year ended December 31, 2020.