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The balance in retained earnings on January 1, 2017, for Palmer Inc. was $750,000. During the year, the corporation paid cash dividends of $88,000 and distributed a stock dividend of $7,600. In addition, the company determined that it had understated its insurance expense in prior years by $51,000. 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 Quarter Ended December 31, 2017For the Year Ended December 31, 2017December 31, 2017
Cash DividendsCorrection for Overstatement of Net Income in Prior PeriodExpensesNet Income / (Loss)Balance, January 1, as reportedBalance, January 1, as adjustedBalance, December 31RevenuesStock DividendsTotal ExpensesTotal Revenues			$
Cash DividendsCorrection for Overstatement of Net Income in Prior PeriodExpensesNet Income / (Loss)Balance, January 1, as reportedBalance, January 1, as adjustedBalance, December 31RevenuesStock DividendsTotal ExpensesTotal Revenues
Cash DividendsCorrection for Overstatement of Net Income in Prior PeriodExpensesNet Income / (Loss)Balance, January 1, as reportedBalance, January 1, as adjustedBalance, December 31RevenuesStock DividendsTotal ExpensesTotal Revenues
Add Less : Cash DividendsCorrection for Overstatement of Net Income in Prior PeriodExpensesNet Income / (Loss)Balance, January 1, as reportedBalance, January 1, as adjustedBalance, December 31RevenuesStock DividendsTotal ExpensesTotal Revenues
AddLess :
Cash Dividends Correction for Overstatement of Net Income in Prior Period Expenses Net Income / (Loss) Balance, January 1, as reported Balance, January 1, as adjusted Balance, December 31 Revenues Stock Dividends Total Expenses Total Revenues		$
Cash Dividends Correction for Overstatement of Net Income in Prior Period Expenses Net Income / (Loss) Balance, January 1, as reported Balance, January 1, as adjusted Balance, December 31 Revenues Stock Dividends Total Expenses Total Revenues
Cash DividendsCorrection for Overstatement of Net Income in Prior PeriodExpensesNet Income / (Loss)Balance, January 1, as reportedBalance, January 1, as adjustedBalance, December 31RevenuesStock DividendsTotal ExpensesTotal Revenues			$

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