Problem 1 (10 points) On January 1 2018 the Happy Corporation had a credit balance in the retained earnings account of $1,000,000. During 2018 the following occurred: 1. Net income for the year was $500,000. 2. It was discovered the 2017 net income was understated by $100,000. 3. The following dividends were declared: On preferred stock................ $ 120,000 On common stock: Cash dividends........... 20,000(only 15,000 paid in 2018) Stock dividends........ 60,000 Instructions: On the worksheet provided, prepare a retained earnings statement in good form