Homework 14-4 The stockholders' equity section of Karp Company at January 1, 2023 follows: There were $2,000 of preferred dividends in arrears on January 1, 2023. During 2023, the company had the following transactions and events. Prepare the journal entries and the stockholders' equity. 15-Jun Preferred Stock, 6%, $50 par Common Stock, $10 par Paid in Capital in excess of Par-Preferred Paid in Capital in excess of Par-Common Retained Earnings 15-Jun Issued 10,000 shares of preferred stock at $95. 1-Jul Declared $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 price was $38 1-Oct Purchased 5,000 shares of common for the treasury at $24 per share 1-Dec Declared a 10% stock dividend on the common stock when the market price was $25 per share. 15-Dec Sold 4,000 shares of treasury stock for $32 per share 31-Dec Closed the net income for 2023 of $820,000 1-Jul $600,000 $800,000 $200,000 $300,000 $800,000 1-Sep DR CR

The stockholders' equity section of Karp Company at January 1, 2023 follows: Preferred Stock, 6%,$50 par Common Stock, $10 par Paid in Capital in excess of Par-Preferred Paid in Capital in excess of Par-Common Retained Earnings $600,000 $800,000 $200,000 $300,000 $800,000 There were $2,000 of preferred dividends in arrears on January 1,2023. During 2023, the company had the following transactions and events. Prepare the journal entries and the stockholders' equity. 15-Jun Issued 10,000 shares of preferred stock at $95. 1-Jul Declared $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 price was $38 1-Oct Purchased 5,000 shares of common for the treasury at $24 per share 1-Dec Declared a 10\% stock dividend on the common stock when the market price was $25 per share. 15-Dec Sold 4,000 shares of treasury stock for $32 per share 31-Dec Closed the net income for 2023 of $820,000 15-Jun 1-Jul 1-Sep