Journalize transactions and events and

Prepare a proper Stockholders' Equity Statement at December 31, 2016:

Name_____________________________ Corporate Dividends The stockholders' equity section of Karp Company at January 1, 2016 follows: Preferred Stock, 6%, $50 par Common Stock, $5 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 $30,000 of preferred dividends in arrears on January 1, 2016. During 2016, the company had the following transactions and events: 1-Jul Declared $50,000 of cash dividends to shareholders. 1-Aug Discovered a $100,000 understatement of 2015 depreciation on equipment (ignore income taxes) 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 10,000 shares of common for the treasury at $20 per share 1-Dec Declared a 10% stock dividend on the common stock when the market price was $18 per share. 15-Dec Distributed the stock dividend declared on December 1. 31-Dec Closed the net income for 2016 of $550,000 Journalize the above transactions and events. (See other requirement below) Prepare a proper Stockholders' Equity Statement at December 31, 2016