Huldquist Company had common stock of $1,000,000 and retained earnings of $475,000 at January 1, 20Y2. During 20Y2, Huldquist Company reported the following:

The company discovered that the 20Y1 depreciation expense of $300,000 should have been $225,000.
a. Journalize the entry necessary to correct the error.
b. Prepare a statement of stockholders’ equity for Huldquist Company for the year ended December 31, 20Y2.

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Net income Cash dividends declared and paid Common stock issued $380,000 30,000 40,000