Grouper Corp.’s unadjusted trial balance at December 1, 2017, is presented below.
Debit

Credit

Cash$25,000
Accounts Receivable35,800
Notes Receivable9,600
Interest Receivable0
Inventory36,020
Prepaid Insurance3,300
Land21,800
Buildings149,400
Equipment60,000
Patent9,450
Allowance for Doubtful Accounts$400
Accumulated Depreciation—Buildings49,800
Accumulated Depreciation—Equipment24,000
Accounts Payable27,200
Salaries and Wages Payable0
Notes Payable (due April 30, 2018)11,500
Income Taxes Payable0
Interest Payable0
Notes Payable (due in 2023)35,400
Common Stock57,700
Retained Earnings16,570
Dividends12,000
Sales Revenue944,500
Interest Revenue0
Gain on Disposal of Plant Assets0
Bad Debt Expense0
Cost of Goods Sold637,000
Depreciation Expense0
Income Tax Expense0
Insurance Expense0
Interest Expense0
Other Operating Expenses61,700
Amortization Expense0
Salaries and Wages Expense106,000
Total$1,167,070$1,167,070

The following transactions occurred during December.
Dec. 2Purchased equipment for $15,600, plus sales taxes of $1,200 (paid in cash).
2Grouper sold for $3,500 equipment which originally cost $4,800. Accumulated depreciation on this equipment at January 1, 2017, was $1,900; 2017 depreciation prior to the sale of equipment was $400.
15Grouper sold for $5,500 on account inventory that cost $3,300.
23Salaries and wages of $6,550 were paid.

Adjustment data:
1.Grouper estimates that uncollectible accounts receivable at year-end are $3,810.
2.The note receivable is a one-year, 8% note dated April 1, 2017. No interest has been recorded.
3.The balance in prepaid insurance represents payment of a $3,300, 6-month premium on September 1, 2017.
4.The building is being depreciated using the straight-line method over 30 years. The salvage value is $31,500.
5.The equipment owned prior to this year is being depreciated using the straight-line method over 5 years. The salvage value is 10% of cost.
6.The equipment purchased on December 2, 2017, is being depreciated using the straight-line method over 5 years, with a salvage value of $2,400.
7.The patent was acquired on January 1, 2017, and has a useful life of 9 years from that date.
8.Unpaid salaries at December 31, 2017, total $2,180.
9.Both the short-term and long-term notes payable are dated January 1, 2017, and carry a 10% interest rate. All interest is payable in the next 12 months.
10
Income tax expense was $14,300. It was unpaid at December 31.

Prepare a 2017 retained earnings statement. (List items that increase retained earnings first.)