Problem: On January 1, 2008, Castle Corporation had retained earnings of $550,000. During the year, Castle had the following selected transactions.
1. Declared cash dividends $120,000.
2. Corrected overstatement of 2007 net income because of depreciation error $30,000.
3. Earned net income $350,000.
4. Declared stock dividends $80,000.
Instructions:
Complete the retained earnings statement for the year.