The balance in retained earnings on January 1, 2014, for Palmer Inc. was $757,650. During the year, the corporation paid cash dividends of $85,270 and distributed a stock dividend of $7,300. In addition, the company determined that it had understated its depreciation expense in prior years by $53,090. Net income for 2014 was $118,260. Prepare the retained earnings statement for 2014. Foley Corporation has retained earnings of $3,358,750 on January 1, 2014. During the year, Foley earned $1,219,030 of net income. It declared and paid a $163,500 cash dividend. In 2014, Foley recorded an adjustment of $103,660 due to the overstatement (from mathematical error) of 2013 depreciation expense. Prepare a retained earnings statement for 2014