P14-2B The stockholders' equity accounts of Holt Inc., at January 1, 2017, are as follows. Preferred Stock, $100 par, 7% Common Stock, $10 par Paid-in Capital in Excess of Par-Preferred Stock Paid-in Capital in Excess of Par-Common Stock $600,000 900,000 100,000 200,000 500,000 Retained Earnings 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 Sept. 1 Dec. 1 15 31 Discovered a $72,000 overstatement of 2016 depreciation on equipment. (Ignore income taxes.) Paid the cash dividend declared on July 1. Declared a 10% stock dividend on common stock when the market price of the stock was $16 per share. Declared a 7% cash dividend on preferred stock payable January 31, 2018. Determined that net income for the year was $350,000. Instructions (a) Journalize the transactions and the closing entries for net income and dividends. (b) Enter the beginning balances in the accounts and post to the stockholders' equity accounts. (Note: Open additional stockholders' equity accounts as needed.) (c) Prepare a retained earnings statement for the year. (d) Prepare a stockholders' equity section at December 31, 2017