Newland Company reported retained earnings at December 31, 2016, of $310,000. Newland had 200,000 shares of…

Newland Company reported retained earnings at December 31, 2016,
of $310,000. Newland had 200,000 shares of common stock outstanding
at the beginning of 2017. The following transactions occurred
during 2017.

1.

An error was discovered. In 2015, depreciation expense was
recorded at $70,000, but the correct amount was $50,000.

2.

A cash dividend of $0.5 per share was declared and paid.

3.

A 5% stock dividend was declared and distributed when the
market price per share was $15 per share.

4.

Net income was $285,000.

Prepare a retained earnings statement for 2017..