The balance in retained earnings on January 1, 2017, for palmer Inc. was $850,000. During the year, the corporation paid cash dividends of $91,000 and distributed a stock divided of $7, 700. In addition, the company determined that it had understated its insurance expense in prior years by $47,000. Net income for 2017 was $110,000. Prepare the retained earnings statement for 2017. (List items that increase retained earnings first.)