(c) Prepare a stockholders' equity section at December 31 P14-2B The stockholders' equity accounts of Motz Inc., at January 1, 2012, are as follows. Preferred Stock, $100 par, 7% $600,000 Common Stock, $10 par 900,000 Paid-in Capital in Excess of Par-Preferred Stock 100,000 Paid-in Capital in Excess of Par-Common Stock 200,000 Retained Earnings 500,000 There were no dividends in arrears on preferred stock. During 2012, the company had the following transactions and events. Declared a $0.50 cash dividend on common stock July 1 Discovered a $72,000 overstatement of 2011 depreciation on equipment. Ignore Aug. 1 income taxes 1 Paid the cash dividend declared on July 1 Sept. 1 Declared a 10 % stock dividend on common stock when the market value of the stock was $16 per share. Dec. Declared a 7 % cash dividend on preferred stock payable January 31, 2013 15 Determined that net income for the year was $350,000. 31 Instructions (a) Journalize the transactions and the closing entry for net income. (b) Enter the beginning balances in the accounts and post to the stockholders' equity accounts. (Note: Open additional stockholders' equity accounts as needed.) (c) Prepare a retained earnings statement for the year. (d) Prepare a stockholders' equity section at December 31, 2012