Answer:
As for the provided information, we have,
<u>Statement of Stockholder's Equity</u>
Date Common Stock Retained Earnings Total
1 June $150,000 $1,610,000 $1,760,000
Stock issued $70,000 $70,000
Net income $112,000 $112,000
Dividends ($26,000) ($26,000)
30 June $220,000 $1,696,000 $1,916,000
Note: Dividend is deducted from net income.
And net income is a part of retained earnings.
