FULL SCREEN PRINTER VERSION BACK Problem 14-2A The stockholders' equity accounts of Karp Company at January 1, 2017, are as follows. Preferred stock, 6%, $50 par Common Stock, $3 par Paid-in Capital in Excess of Par-Preferred Stock Paid-in Capital in Excess of Par-Common Stock Retained Earnings $550,000 465,000 185,000 285,000 750,000 There were no dividends in arrears on preferred stock. During 2017, the company had the following transactions and events. July 1 Declared a $0.50 cash dividend per share on common stock Aug 1 Discovered $20,000 understatement of depreciation expense in 2016. (Ignore income taxes.) Sept. 1 Paid the cash dividend declared on July 1. 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 $300,000 31 Recognized a $190,000 restriction of retained earnings for plant expansion