190 Homework 14-2 191 The stockholders' equity section of Karp Company at January 1, 2023 follows: 192 193 Preferred Stock, 7%, $50 par $600,000 194 Common Stock, $5 par $800,000 195 Paid in Capital in excess of Par-Preferred $200,000 196 197 Paid in Capital in excess of Par-Common Retained Earnings $300,000 $800,000 198 199 There were $2,000 of preferred dividends in arrears on January 1, 2023. 200 During 2023, the company had the following transactions and events. Prepare the journal entries 201 and the stockholders' equity. 15-Jun Issued 10,000 shares of preferred stock at $85. 1-Jul Dedared $100,000 of cash dividends to shareholders. 1-Sep Paid the cash dividend declared on July 1 15-Sep Announced a 2 for 1 common stock split when the market ice was $38 1-Oct Purchased 10,000 shares of common for the treasury at $28 per share 1-Dec Declared and distributed a 10% stock dividend on the common stock when the market price was $24 per share. 15-Dec Sold 4,000 shares of treasury stock for $30 per share 31-Dec Closed the net income for 2023 of $775,000 202 203 204 205 206 207 208 209 210 211 212 213 214 15-Jun 215 216 217 218 1-Jul 219 220 221 222 1-Sep 223 DR CR 1-Sep 9 15-Sep No entry 1-Oct 1-Dec 15-Dec 31-Dec Stockholders' Equity at December 31, 2023 Preferred Stock, 7%, $50 par, 22,000 shares issued and outstanding Common Stock, $2.5 par, 351,000 sh issued, 345,000 sh outstanding Preferred Stock Paid in Capital in excess of par Common Stock Paid in Capital in excess of par Paid in Capital in excess of par-Treasury Stock Total Paid in Capital Retained Earnings Less: Treasury Stock, 6000 Common Shares @ $28 per share Total Stockholders' Equity 2 3 4