Reference no: EM131812403

A The stockholders' equity accounts of Karp Company at January 1, 2017, are as follows. Preferred Stock, 6%, $50 par $550,000 Common Stock, $7 par 1,144,500 Paid-in Capital in Excess of Par-Preferred Stock 192,000 Paid-in Capital in Excess of Par-Common Stock 293,500 Retained Earnings 813,500 There were no dividends in arrears on preferred stock. During 2017, the company had the following transactions and events. July 1 Declared a $0.70 cash dividend per share on common stock. Aug. 1 Discovered $29,000 understatement of depreciation expense in 2016. (Ignore income taxes.) Sept. 1 Paid the cash dividend declared on July 1. Dec. 1 Declared a 10% stock dividend on common stock when the market price of the stock was $15 per share. 15 Declared a 6% cash dividend on preferred stock payable January 15, 2018. 31 Determined that net income for the year was $359,000. 31 Recognized a $212,000 restriction of retained earnings for plant expansion. Journalize the transactions, events, and closing entries for net income and dividends.