The balance in retained earnings on January 1, 2017, for Hotel Plaza Inc., was $575,000. During the year, the corporation paid cash dividends of $70,000 and distributed a stock dividend of $15,000. In addition, the company determined that it had understated its cost of good sold in prior years by $50,000. Net income for 2017 was $125,000. Instructions Prepare the retained earnings statement for 2017. 7 A B I EE % S HOTEL PLAZA INC. Retained Earnings Statement HOTEL PLAZA INC. Retained Earnings Statement For the Year Ended December 31, 2017 statement of net income in prior period (CGS error) Balance, January 1 as reported Correction for Balance, January 1, as adjusted Add: Net income Less: Cash dividends Stock dividend Balance, December 31