Salt & Pepper, Inc., had retained earnings at the beginning of the current year of $460,000. During the year the company earned net income of $250,000 and declared dividends as follows:• • $1 per share for the current-year dividend on the 10,000 shares of preferred stock outstanding.
• $1 per share for the dividend in arrears for one year on the 10,000 shares of preferred stock outstanding.
• $0.50 per share for the current-year dividend on the 200,000 shares of common stock outstanding.
In addition, the company discovered an overstatement in the prior year’s net income of $65,000 and corrected that error in the current year. Prepare a statement of retained earnings for the year