2 The stockholders' equity accounts of Motz Inc., at January 1, 2012, are as follows. Preferred Stock, $100 par, 7% Common Stock, $10 par Paid-in Capital in Excess of Par-Preferred Stock Paid-in Capital in Excess of Par-Common Stock Retained Earnings $600,000 900,000 100,000 200,000 500,000 There were no dividends in arrears on preferred stock. During 2012, the company had the following transactions and events. July 1 Declared a $0.50 cash dividend on common stock. Aug. 1 Discovered a $72,000 overstatement of 2011 depreciation on equipment. 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 value of the stock was $16 per share. 15 Declared a 7% cash dividend on preferred stock payable January 31, 2013. 31 Determined that net income for the year was $350,000. Instructions (6 Marks) A. Journalize the transactions and the closing entry for net income. B. Prepare a retained earnings statement for the year. C. Prepare a stockholders' equity section at December 31, 2012