The stockholders’ equity section of Summer Corporation’s balance sheet shows the following as of the end of 2003:

d. A prior-period adjustment was made to retained earnings to correct an overstatement of 2002 net income in the amount of $12,000.

e. Common stock was sold for $12.

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Preferred stock (5%, $30 par, 10,000 shares authorized, 5,000 shares issued and outstanding). Common stock ($12 par, 50,000 shares authorized, 28,000 issued, 27,500 outstanding). Paid-in capital in excess of par, preferred stock Paid-in capital in excess of par, common stock $ ? 336,000 ? 424,000 Retained earnings Treasury stock (purchased at $14) 78,000 ? $ ? Total stockholders' equity Prepare a statement of retained earnings for the year ended December 31, 2003. Assume the following additional facts: a. Retained earnings as of December 31, 2002, was $25,500. b. Net income as of 2003 was $72,000. C Dividends equal to the current-dividend preference on preferred stock were declared and issued.