Spreadsheet and Statement of Cash Flows The following information is available for Bott Company: Account Balances December 31, 2015 December 31, 2016 Debits Cash Accounts Receivable Notes Receivable (short-term) Inventories Prepaid Items Land Buildings and Equipment Patent Treasury Stock (common, at cost, $25 per share) Totals $1,800 2,000 4,720 1,000 9,700 1,380 17,100 110,000 4,000 1,000 1 16,000 50,900 4,600 0 12,000 1,700 11,000 78,000 4,400 2,500 $24,000 31,800 8,210 3,500 Accounts Payable Salaries Payable Miscellaneous Current Payables Interest Payable 12% Bonds Payable Premium on Bonds Payable Convertible Preferred Stock, $50 par Additional Paid-in Capital on Preferred Stock Common Stock, $10 par Additional Paid-in Capital on Common Stock Retained Earnings Totals 6,000 2,600 1,400 0 140 7,000 650 6,500 2,500 23,500 41,150 24,750 $116,000 150,900 0 3,000 18,000 28,800 23,200 Additional information for the year: a. Beginning retained earnings, unadjusted $23,200 Less: Prior period adjustment-correction of understatement of depreciation (net of income taxes Adjusted beginning retained earnings Add: Net income 11,500 $33,400 Less: Cash dividends Stock dividends (150 shares at $31 per share) 8,650 $24,750 Ending retained earnings b. Last year, depreciation expense was inadvertently understated in the amount of S1,800. The correction was made this year to Accumulated Depreciation and to Retained Earnings as a prior period adjustment. The com- pany also received a related income tax refund of $500. Sixty shares of treasury stock (common) were reissued at $30 per share. c