The balance in retained earnings on January 1, 2017, for Palmer Inc. was $850,000. During the year, the corporation paid cash dividends of $85,000 and distributed a stock dividend of $8,700. In addition, the company determined that it had understated its insurance expense in prior years by $53,000. Net income for 2017 was $130,000. Prepare the retained earnings statement for 2017. (List items that increase retained earnings first.) PALMER INC. Retained Earnings Statement For the Year Ended December 31, 2017 Balance, January 1, as reported Correction for Overstatement of Net Income in Prior Period Balance, January 1, as adjusted Add Net Income (Loss) Less Cash Dividends Stock Dividends Balance, December 31