On March 1, 2008, Peleus Hotels had retained earnings of $690,000. During the year plus had the following selected transactions:
1. Declared cash dividends $155,000.
2. Corrected understatement of 2007 net income because of inventory valuation error of $35,000.
3. Earned net income $411,500.
4. Declared stock dividends $50,000.
Instructions
Prepare a retained earnings statement for the year.