Journalize the transactions, events, and closing entries for net income and dividends

The stockholders equity accounts of Karp Company at January 1, 2017, are as follows.

Preferred Stock, 6%, $50 par		$620,000
Common Stock, $5 par		810,000
Paid-in Capital in Excess of ParPreferred Stock		185,000
Paid-in Capital in Excess of ParCommon Stock		293,500
Retained Earnings		752,500

There were no dividends in arrears on preferred stock. During 2017, the company had the following transactions and events.

July 1		Declared a $0.90 cash dividend per share on common stock.
Aug. 1		Discovered $29,500 understatement of depreciation expense in 2016. (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 price of the stock was $18 per share.
15		Declared a 6% cash dividend on preferred stock payable January 15, 2018.
31		Determined that net income for the year was $304,000.
31		Recognized a $208,000 restriction of retained earnings for plant expansion.