Question 5 Your answer is partially correct. Try again. The balance in retained earnings on January 1, 2017, for Stellar Ltd. was 846,190. During the year, the corporation paid cash dividends of 64,740 and distributed a share dividend of 8,860. In addition, the company determined that it had understated its depreciation expense in prior years by 39,380. Net income for 2017 was 124,620. Prepare the retained earnings statement for 2017. (List items that increase retained earnings first.) STELLAR LTD. Retained Earnings Statement For the Year Ended December 31, 2017 X Retained Earnings, January 1, as reported X Correction for overstatement of Net Income in Prior Period X Retained Earnings, January 1, as adjusted Add Net Income / (Loss) Less X Cash Dividend > Share Dividend Retained Earnings, December 31