Problem 14-2A (Part Level Submission) The stockholders equity accounts of Karp Company at January 1, 2017, are as follows: Preferred Stock, 6%, $50 par $640,000 Common Stock, $7 par 1,095,500 Paid-in Capital in Excess of ParPreferred Stock 185,000 Paid-in Capital in Excess of ParCommon Stock 304,500 Retained Earnings 791,000 There were no dividends in arrears on preferred stock. During 2017, the company had the following transactions and events. July 1 Declared a $0.80 cash dividend per share on common stock. Aug. 1 Discovered $28,500 understatement of depreciation expense in 2016. (Ignore income taxes.) Sept. 1 Paid the cash dividend declared on July 1. Dec. 1 Declared a 15% stock dividend on common stock when the market price of the stock was $20 per share. 15 Declared a 6% cash dividend on preferred stock payable January 15, 2018. 31 Determined that net income for the year was $392,000. 31 Recognized a $203,000 restriction of retained earnings for plant expansion. Collapse question part (a) Journalize the transactions, events, and closing entries for net income and dividends.