(Preparea statement of retained earnings, LO 1,5) Minden Corporation was incorporated on August 1, 2005 by five shareholders who each invested $50,000 in cash in exchange for common shares. Minden’s year end is July 31. In its first year of business Minden had net income of $97,500. For its years ended July 31, 2007 and 2008, its second and third years of operation, Minden reported net income of $189,000 and $224,000 respectively. In its first year Minden did not pay any dividends, but in fiscal 2007 it paid $25,000 in dividends and in 2008 it paid $40,000 in dividends.

Required:

Prepare a statement of retained earnings for the year ended July 31, 2008.