Your answer is partially correct. Waterway Corporation has retained earnings of $718,500 at January 1, 2020. Net income during 2020 was $1,596,000, and cash dividends declared and paid during 2020 totaled $80,500. Prepare a retained earnings statement for the year ended December 31, 2020. Assume an error was discovered: land costing $86,470 (net of tax) was charged to maintenance and repairs expense in 2019. (List items that increase retained earnings first.) WATERWAY CORPORATION Retained Earnings Statement For the Year Ended December 31, 2020 Retained Earnings, January 1, as Reported Correction for Overstatement of Expenses in Prior Period Retained Earnings, December 31 $ 718500 86470 Add : Net Income/(Loss) Less : Cash Dividends 80500 i Retained Earnings, December 31 $