The balance in retained earnings on January 1, 2017, for Palmer Inc. was $750,000. During the year, the corporation paid cash dividends of $85,000 and distributed a stock dividend of $8,400. In addition, the company determined that it had understated its insurance expense in prior years by $48,000. Net income for 2017 was $120,000.
Prepare the retained earnings statement for 2017.