The post-closing trial balance of Storey Corporation at December 31, 2017, contains the following stockholders' equity accounts. A review of the accounting records reveals the following. No errors have been made in recording 2017 transactions or in preparing the closing entry for net income. Preferred stock is $50 par, 6%, and cumulative; 15,200 shares have been outstanding since January 1, 2016. Authorized stock is 20,200 shares of preferred, 516,000 shares of common with a $10 par value. The January 1 balance in Retained Earnings was $1,190,000. On July 1, 20,700 shares of common stock were issued for cash at $18 per share. On September 1, the company discovered an understatement error of $85,900 in computing salaries and wages expense in 2016. The net of tax effect of $60,130 was properly debited directly to Retained Earnings. A cash dividend of $258,000 was declared and properly allocated to preferred and common stock on October 1. No dividends were paid to preferred stockholders in 2016. On December 31, a 10% common stock dividend was declared out of retained earnings on common stock when the market price per share was $18. Net income for the year was $561,000. 10. On December 31, 2017, the directors authorized disclosure of a $203,000 restriction of retained earnings for plant expansion. (Use Note X.) Reproduce the Retained Earnings account for 2017. (List items in order presented in the problem.)