Response:
Regarding the data provided, we have the following details:
Statement of Stockholder's Equity
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: Dividends are subtracted from net income.
Also, net income contributes to retained earnings.