On January 1, 1996, Waikiki Corporation had Retained Earnings of \(\$ 580,000\). During the year, Waikiki had the following selected transactions:

Prepare a retained earnings 1. Declared cash dividends \(\$ 120,000\). statement.

(SO 6)

2. Corrected overstatement of 1995 net income because of depreciation error \(\$ 20,000\).

3. Earned net income \(\$ 310,000\).

4. Declared stock dividends \(\$ 60,000\).

\section*{Instructions}

Prepare a retained earnings statement for the year.