Exercise 21-16 (Part Level Submission) Neilson Tool Corporation's December 31 year-end financial statements contained the following errors: December 31, 2016 December 31, 2017 $11,700 overstated $9,600 understated Ending inventory Depreciation expense $3,900 overstated An insurance premium of $55,900 covering the years 2016, 2017, and 2018 was prepaid in 2016, with the entire amount charged to expense that year. In addition, on December 31, 2017, fully depreciated machinery was sold or $16,700 cash but he entry was not recorded until 2018. There were no other errors during 2016 o 2017 and no corrections have been made or anyofthe errors Neil on ollows ASPE (d) Assume that the company has retained earnings on lanuary 1, 2016 and 2017, of $1,262,000 and $1,627,500, respectively, net income for 2016 and 2017 of $429,000 and $394,000, respectively; and cash dividends declared for 2016 and 2017 of S63,500 and $41,000, respectively, before adjustment for the above items. Prepare a revised statement of retained earnings for 2016 and 2017. (Enter negative amounts using either a negative sign preceding the number e.g.-45 or parentheses e.g. (45).) NEILSON TOOL CORPORATION Statement of Retained Earnings For the Years 2017 and 2016 2016 (Restated) 2017