Problem 14-2A The stockholders equity accounts of Karp Company at January 1, 2017, are as follows Preferred Stock, %, S50 par Common Stock, $5 par Paid-in Capital in Dxcess of Par-Preterred Stock Paid-in Capital in Excess of Par-Common Stock Retained Eamings $580,000 209,500 02,000 There were no dividends in arrears on preferred stock. During 2017, the company had the following transactions and events luly Declared a sD.70 cash dividend per share on common stock. Aug, 1 Discovered $26,000 understatement of depreclation expense in 2016. (Ignore income taxes.) Sept. 1 Paid the cash dividend declared on July 1. Dec. 1 Declared15% stock dividend on common stock when the market price of the stock was $20 per share. Declared 6% cash dividend on preferred stock payable January 15, 2018. Determined that net income for the year was $334,000. Recognized a 5216,000 restriction of retained earnings for plant expansion. 15 31 31 Jou nalize the transactions, events, and closing entries tor net income and dividends Credit account t ties a enter 0 for the amounts. Record Journal entries in the order presented in the problem.) are automatically i dented when amount is entered. Do not indent lly. It 0 entry s required select No Entry for the account titles and Debit Date Aocount Titles and Explanation Credit To close net income) Preferred Stuck Ref Dehit Date Explanation Balance Dalance Common Stock Ref Debit Date Explanation Balance Balance Ref Debit Date Explanation Balanoe Paid-in Capital in FExcess of Date Explanation Ref Debit Credit Balance Balance Paid-in Capital in Fxcess of Par-Common Stock Date Explanation Ref Debit Credit Balance Balance Ref Debit Date Explanation Balance Dalance Prior perlod adjustment-depreclation expense understated | Cash dvidends Stock cividends Date FExplanation Ref Dehit Date Explanation Rel Debit Credit Dalanoe Propare a rotained carrings statomant for the year. (List itoms that increase retained earnings first.) KARP COMPANY SHOW LTST OF ACCOUNTS Prepare a stockholders equity section at December 31, 2017, (Enter account name only and do not provide descriptive information) KARP COMPANY Balance Sheet (partial) Click if you would like to Show Work for this question: Open Show Work