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%,$50par	$600,000
Common Stock,$5par	800,000
Paid-in Capital in Excess of ParPreferred Stock	200,000
Paid-in Capital in Excess of ParCommon Stock	300,000
Retained Earnings	800,000

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

July 1	Declared a$0.6cash dividend per share on common stock.
Aug. 1	Discovered$25,000understatement of depreciation expense in 2016. (Ignore income taxes.)
Sept. 1	Paid the cash dividend declared on July 1.
Dec. 1	Declared a15%stock dividend on common stock when the market price of the stock was$18per share.
15	Declared a6%cash dividend on preferred stock payable January 15, 2018.
31	Determined that net income for the year was$355,000.
31	Recognized a$200,000restriction of retained earnings for plant expansion.

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

Enter the beginning balances in the accounts, and post to the stockholders equity accounts. (Note:Open additional stockholders equity accounts as needed.)

Prepare a retained earnings statement for the year.

Prepare a stockholders equity section at December 31, 2017.