Problem 14 2A The stockholders equity accounts of Karp Company at January 1, 2017, are as follows Preferred Stock,6 , $50par $645,000 Common Stock, $3par 472,500 Paid in Capital in Excess of Par Preferred Stock 199,000 Paid in Capital in Excess of Par Common Stock 291,000 Retained Earnings 798,000 There were no dividends in arrears on preferred stock During 2017, the company had the following transactions and events July 1 Declared a $0 60cash dividend per share on common stock Aug 1 Discovered $27,000understatement 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 $17per share 15 Declared a6 cash dividend on preferred stock payable January 15, 2018 31 Determined that net income for the year was $300,000 31 Recognized a $194,000restriction of retained earnings for plant expansion Warning Don't show me this message again for the assignment Ok Cancel Journalize the transactions, events, and closing entries for net income and dividends (Credit account titles are automatically indented when amount is entered Do not indent manually If no entry is required, select No Entry for the account titles and enter 0 for the amounts Record journal entries in the order presented in the problem ) Date Account Titles and Explanation Debit Credit Jan 1Jan 15July 1Aug 1Sept 1Dec 1Dec 15Dec 31 Jan 1Jan 15July 1Aug 1Sept 1Dec 1Dec 15Dec 31 Jan 1Jan 15July 1Aug 1Sept 1Dec 1Dec 15Dec 31 Jan 1Jan 15July 1Aug 1Sept 1Dec 1Dec 15Dec 31 Jan 1Jan 15July 1Aug 1Sept 1Dec 1Dec 15Dec 31 Jan 1Jan 15July 1Aug 1Sept 1Dec 1Dec 15Dec 31 (To close net income) Jan 1Jan 15July 1Aug 1Sept 1Dec 1Dec 15Dec 31 (To close cash dividends) Jan 1Jan 15July 1Aug 1Sept 1Dec 1Dec 15Dec 31 (To close stock dividends) Warning Don't show me this message again for the assignment Ok Cancel Link to Text Link to Text Link to Text Enter the beginning balances in the accounts, and post to the stockholders equity accounts (Note Open additional stockholders equity accounts as needed ) (Post entries in the order of journal entries presented in the previous part ) Preferred Stock Date Explanation Ref Debit Credit Balance Jan 1Jan 15July 1Aug 1Dec 1Dec 15Dec 31 Balance Common Stock Date Explanation Ref Debit Credit Balance Jan 1Jan 15July 1Aug 1Dec 1Dec 15Dec 31 Balance Common Stock Dividends Distributable Date Explanation Ref Debit Credit Balance Jan 1Jan 15July 1Aug 1Dec 1Dec 15Dec 31 Paid in Capital in Excess of Par Preferred Stock Date Explanation Ref Debit Credit Balance Jan 1Jan 15July 1Aug 1Dec 1Dec 15Dec 31 Balance Paid in Capital in Excess of Par Common Stock Date Explanation Ref Debit Credit Balance Jan 1Jan 15July 1Aug 1Dec 1Dec 15Dec 31 Balance Jan 1Jan 15July 1Aug 1Dec 1Dec 15Dec 31 Retained Earnings Date Explanation Ref Debit Credit Balance Jan 1Jan 15July 1Aug 1Dec 1Dec 15Dec 31 Balance Jan 1Jan 15July 1Aug 1Dec 1Dec 15Dec 31 Prior period adjustment depreciation expense understated Jan 1Jan 15July 1Aug 1Dec 1Dec 15Dec 31 Net income Jan 1Jan 15July 1Aug 1Dec 1Dec 15Dec 31 Cash dividends Jan 1Jan 15July 1Aug 1Dec 1Dec 15Dec 31 Stock dividends Cash Dividends Date Explanation Ref Debit Credit Balance Jan 1Jan 15July 1Aug 1Dec 1Dec 15Dec 31 Jan 1Jan 15July 1Aug 1Dec 1Dec 15Dec 31 Jan 1Jan 15July 1Aug 1Dec 1Dec 15Dec 31 Stock Dividends Date Explanation Ref Debit Credit Balance Jan 1Jan 15July 1Aug 1Dec 1Dec 15Dec 31 Jan 1Jan 15July 1Aug 1Dec 1Dec 15Dec 31 Warning Don't show me this message again for the assignment Ok Cancel Link to Text Link to Text Link to Text Prepare a retained earnings statement for the year (List items that increase retained earnings first ) KARP COMPANY Retained Earnings Statement December 31, 2017For the Quarter Ended December 31, 2017For the Year Ended December 31, 2017 Cash Dividends CommonCash Dividends PreferredCorrection of 2016 Depreciation ExpenseDividendsExpensesNet Income (Loss)Balance, January 1, as reportedBalance, January 1, as adjustedBalance, December 31RevenuesStock Dividends CommonTotal ExpensesTotal Revenues $ Cash Dividends CommonCash Dividends PreferredCorrection of 2016 Depreciation ExpenseDividendsExpensesNet Income (Loss)Balance, January 1, as reportedBalance, January 1, as adjustedBalance, December 31RevenuesStock Dividends CommonTotal ExpensesTotal Revenues ( ) Cash Dividends CommonCash Dividends PreferredCorrection of 2016 Depreciation ExpenseDividendsExpensesNet Income (Loss)Balance, January 1, as reportedBalance, January 1, as adjustedBalance, December 31RevenuesStock Dividends CommonTotal ExpensesTotal Revenues AddLess Cash Dividends CommonCash Dividends PreferredCorrection of 2016 Depreciation ExpenseDividendsExpensesNet Income (Loss)Balance, January 1, as reportedBalance, January 1, as adjustedBalance, December 31RevenuesStock Dividends CommonTotal ExpensesTotal Revenues AddLess Cash Dividends CommonCash Dividends PreferredCorrection of 2016 Depreciation ExpenseDividendsExpensesNet Income (Loss)Balance, January 1, as reportedBalance, January 1, as adjustedBalance, December 31RevenuesStock Dividends CommonTotal ExpensesTotal Revenues $ Cash Dividends CommonCash Dividends PreferredCorrection of 2016 Depreciation ExpenseDividendsExpensesNet Income (Loss)Balance, January 1, as reportedBalance, January 1, as adjustedBalance, December 31RevenuesStock Dividends CommonTotal ExpensesTotal Revenues Cash Dividends CommonCash Dividends PreferredCorrection of 2016 Depreciation ExpenseDividendsExpensesNet Income (Loss)Balance, January 1, as reportedBalance, January 1, as adjustedBalance, December 31RevenuesStock Dividends CommonTotal ExpensesTotal Revenues Cash Dividends CommonCash Dividends PreferredCorrection of 2016 Depreciation ExpenseDividendsExpensesNet Income (Loss)Balance, January 1, as reportedBalance, January 1, as adjustedBalance, December 31RevenuesStock Dividends CommonTotal ExpensesTotal Revenues $ Warning Don't show me this message again for the assignment Ok Cancel Link to Text Link to Text Link to Text Prepare a stockholders equity section at December 31, 2017 (Enter account name only and do not provide descriptive information ) KARP COMPANY Balance Sheet (Partial) December 31, 2017For the Year Ended December 31, 2017For the Quarter Ended December 31, 2017 Additional Paid in CapitalCapital StockCurrent AssetsCurrent LiabilitiesIntangible AssetsLong term InvestmentsLong term LiabilitiesPaid in CapitalProperty, Plant and EquipmentStockholders' EquityTotal Additional Paid in CapitalTotal AssetsTotal Capital StockTotal Current AssetsTotal Current LiabilitiesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Stockholders' EquityTotal Long term InvestmentsTotal Long term LiabilitiesTotal Paid in CapitalTotal Paid in Capital and Retained EarningsTotal Property, Plant and EquipmentTotal Stockholders' Equity Additional Paid in CapitalCapital StockCurrent AssetsCurrent LiabilitiesIntangible AssetsLong term InvestmentsLong term LiabilitiesPaid in CapitalProperty, Plant and EquipmentStockholders' EquityTotal Additional Paid in CapitalTotal AssetsTotal Capital StockTotal Current AssetsTotal Current LiabilitiesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Stockholders' EquityTotal Long term InvestmentsTotal Long term LiabilitiesTotal Paid in CapitalTotal Paid in Capital and Retained EarningsTotal Property, Plant and EquipmentTotal Stockholders' Equity Additional Paid in CapitalCapital StockCurrent AssetsCurrent LiabilitiesIntangible AssetsLong term InvestmentsLong term LiabilitiesPaid in CapitalProperty, Plant and EquipmentStockholders' EquityTotal Additional Paid in CapitalTotal AssetsTotal Capital StockTotal Current AssetsTotal Current LiabilitiesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Stockholders' EquityTotal Long term InvestmentsTotal Long term LiabilitiesTotal Paid in CapitalTotal Paid in Capital and Retained EarningsTotal Property, Plant and EquipmentTotal Stockholders' Equity $ $ Additional Paid in CapitalCapital StockCurrent AssetsCurrent LiabilitiesIntangible AssetsLong term InvestmentsLong term LiabilitiesPaid in CapitalProperty, Plant and EquipmentStockholders' EquityTotal Additional Paid in CapitalTotal AssetsTotal Capital StockTotal Current AssetsTotal Current LiabilitiesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Stockholders' EquityTotal Long term InvestmentsTotal Long term LiabilitiesTotal Paid in CapitalTotal Paid in Capital and Retained EarningsTotal Property, Plant and EquipmentTotal Stockholders' Equity Additional Paid in CapitalCapital StockCurrent AssetsCurrent LiabilitiesIntangible AssetsLong term InvestmentsLong term LiabilitiesPaid in CapitalProperty, Plant and EquipmentStockholders' EquityTotal Additional Paid in CapitalTotal AssetsTotal Capital StockTotal Current AssetsTotal Current LiabilitiesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Stockholders' EquityTotal Long term InvestmentsTotal Long term LiabilitiesTotal Paid in CapitalTotal Paid in Capital and Retained EarningsTotal Property, Plant and EquipmentTotal Stockholders' Equity Additional Paid in CapitalCapital StockCurrent AssetsCurrent LiabilitiesIntangible AssetsLong term InvestmentsLong term LiabilitiesPaid in CapitalProperty, Plant and EquipmentStockholders' EquityTotal Additional Paid in CapitalTotal AssetsTotal Capital StockTotal Current AssetsTotal Current LiabilitiesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Stockholders' EquityTotal Long term InvestmentsTotal Long term LiabilitiesTotal Paid in CapitalTotal Paid in Capital and Retained EarningsTotal Property, Plant and EquipmentTotal Stockholders' Equity Additional Paid in CapitalCapital StockCurrent AssetsCurrent LiabilitiesIntangible AssetsLong term InvestmentsLong term LiabilitiesPaid in CapitalProperty, Plant and EquipmentStockholders' EquityTotal Additional Paid in CapitalTotal AssetsTotal Capital StockTotal Current AssetsTotal Current LiabilitiesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Stockholders' EquityTotal Long term InvestmentsTotal Long term LiabilitiesTotal Paid in CapitalTotal Paid in Capital and Retained EarningsTotal Property, Plant and EquipmentTotal Stockholders' Equity Additional Paid in CapitalCapital StockCurrent AssetsCurrent LiabilitiesIntangible AssetsLong term InvestmentsLong term LiabilitiesPaid in CapitalProperty, Plant and EquipmentStockholders' EquityTotal Additional Paid in CapitalTotal AssetsTotal Capital StockTotal Current AssetsTotal Current LiabilitiesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Stockholders' EquityTotal Long term InvestmentsTotal Long term LiabilitiesTotal Paid in CapitalTotal Paid in Capital and Retained EarningsTotal Property, Plant and EquipmentTotal Stockholders' Equity $ Problem 14 2A The stockholders' equity accounts of Karp Company at January 1, 2017, are as follows Preferred Stock, 6 , $50 par Common Stock, $3 par Paid in Capital in Excess of ParPreferred Stock Paid in Capital in Excess of ParCommon Stock Retained Earnings $645,000 472,500 199,000 291,000 798,000 There were no dividends in arrears on preferred stock During 2017, the company had the following transactions and events July 1 Aug 1 Sept 1 Dec 1 15 31 31 Declared a $0 60 cash dividend per share on common stock Discovered $27,000 understatement of depreciation expense in 2016 (Ignore income taxes ) Paid the cash dividend declared on July 1 Declared a 15 stock dividend on common stock when the market price of the stock was $17 per share Declared a 6 cash dividend on preferred stock payable January 15, 2018 Determined that net income for the year was $300,000 Recognized a $194,000 restriction of retained earnings for plant expansion Don't show me this message again for the assignment Journalize the transactions, events, and closing entries for net income and dividends (Credit account titles are automatically indented when amount is entered Do not indent manually If no entry is required, select No Entry for the account titles and enter 0 for the amounts Record journal entries in the order presented in the problem ) Date Account Titles and Explanation Debit Credit (To close net income) (To close cash dividends) (To close stock dividends) Don't show me this message again for the assignment Link to Text Link to Text Link to Text Enter the beginning balances in the accounts, and post to the stockholders' equity accounts (Note Open additional stockholders' equity accounts as needed ) (Post entries in the order of journal entries presented in the previous part ) Preferred Stock Date Explanation Re Debit f Balance Credit Balance Credit Balance Credit Balance Credit Balance Credit Balance Credit Balance Common Stock Date Explanation Re Debit f Balance Common Stock Dividends Distributable Date Explanation Re Debit f Paid in Capital in Excess of ParPreferred Stock Date Explanation Re Debit f Balance Paid in Capital in Excess of ParCommon Stock Date Explanation Re Debit f Balance Retained Earnings Date Explanation Re Debit f Balance Prior period adjustment depreciation expense understated Net income Cash dividends Stock dividends Cash Dividends Date Explanation Re Debit f Credit Balance Re Debit f Credit Balance Stock Dividends Date Explanation Don't show me this message again for the assignment Link to Text Link to Text Link to Text Prepare a retained earnings statement for the year (List items that increase retained earnings first ) KARP COMPANY Retained Earnings Statement $ ( ) $ $ Don't show me this message again for the assignment Link to Text Link to Text Link to Text Prepare a stockholders' equity section at December 31, 2017 (Enter account name only and do not provide descriptive information ) KARP COMPANY Balance Sheet (Partial) $ $ $

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Problem 14-2A The stockholders? equity accounts of Karp Company at January 1, 2017, are as follows. Preferred Stock,6%, $50par $645,000 Common Stock, $3par 472,500 Paid-in

Problem 14-2A The stockholders? equity accounts of Karp Company at January 1, 2017, are as follows.

Preferred Stock,6%, $50par	$645,000
Common Stock, $3par	472,500
Paid-in Capital in Excess of Par?Preferred Stock	199,000
Paid-in Capital in Excess of Par?Common Stock	291,000
Retained Earnings	798,000

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

July 1	Declared a $0.60cash dividend per share on common stock.
Aug. 1	Discovered $27,000understatement 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 $17per share.
15	Declared a6% cash dividend on preferred stock payable January 15, 2018.
31	Determined that net income for the year was $300,000.
31	Recognized a $194,000restriction of retained earnings for plant expansion.

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Journalize the transactions, events, and closing entries for net income and dividends. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Record journal entries in the order presented in the problem.)

Date	Account Titles and Explanation	Debit	Credit
Jan. 1Jan. 15July 1Aug. 1Sept. 1Dec. 1Dec. 15Dec. 31

Jan. 1Jan. 15July 1Aug. 1Sept. 1Dec. 1Dec. 15Dec. 31

Jan. 1Jan. 15July 1Aug. 1Sept. 1Dec. 1Dec. 15Dec. 31

Jan. 1Jan. 15July 1Aug. 1Sept. 1Dec. 1Dec. 15Dec. 31


Jan. 1Jan. 15July 1Aug. 1Sept. 1Dec. 1Dec. 15Dec. 31

Jan. 1Jan. 15July 1Aug. 1Sept. 1Dec. 1Dec. 15Dec. 31

(To close net income)
Jan. 1Jan. 15July 1Aug. 1Sept. 1Dec. 1Dec. 15Dec. 31

(To close cash dividends)
Jan. 1Jan. 15July 1Aug. 1Sept. 1Dec. 1Dec. 15Dec. 31

(To close stock dividends)

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Enter the beginning balances in the accounts, and post to the stockholders? equity accounts. (Note: Open additional stockholders? equity accounts as needed.) (Post entries in the order of journal entries presented in the previous part.)

Preferred Stock
Date	Explanation	Ref	Debit	Credit	Balance
Jan. 1Jan. 15July 1Aug. 1Dec. 1Dec. 15Dec. 31	Balance	?
Common Stock
Date	Explanation	Ref	Debit	Credit	Balance
Jan. 1Jan. 15July 1Aug. 1Dec. 1Dec. 15Dec. 31	Balance	?
Common Stock Dividends Distributable
Date	Explanation	Ref	Debit	Credit	Balance
Jan. 1Jan. 15July 1Aug. 1Dec. 1Dec. 15Dec. 31
Paid-in Capital in Excess of Par?Preferred Stock
Date	Explanation	Ref	Debit	Credit	Balance
Jan. 1Jan. 15July 1Aug. 1Dec. 1Dec. 15Dec. 31	Balance	?
Paid-in Capital in Excess of Par?Common Stock
Date	Explanation	Ref	Debit	Credit	Balance
Jan. 1Jan. 15July 1Aug. 1Dec. 1Dec. 15Dec. 31	Balance	?
Jan. 1Jan. 15July 1Aug. 1Dec. 1Dec. 15Dec. 31
Retained Earnings
Date	Explanation	Ref	Debit	Credit	Balance
Jan. 1Jan. 15July 1Aug. 1Dec. 1Dec. 15Dec. 31	Balance	?
Jan. 1Jan. 15July 1Aug. 1Dec. 1Dec. 15Dec. 31	Prior period adjustment?depreciation expense understated
Jan. 1Jan. 15July 1Aug. 1Dec. 1Dec. 15Dec. 31	Net income
Jan. 1Jan. 15July 1Aug. 1Dec. 1Dec. 15Dec. 31	Cash dividends
Jan. 1Jan. 15July 1Aug. 1Dec. 1Dec. 15Dec. 31	Stock dividends
Cash Dividends
Date	Explanation	Ref	Debit	Credit	Balance
Jan. 1Jan. 15July 1Aug. 1Dec. 1Dec. 15Dec. 31
Jan. 1Jan. 15July 1Aug. 1Dec. 1Dec. 15Dec. 31
Jan. 1Jan. 15July 1Aug. 1Dec. 1Dec. 15Dec. 31
Stock Dividends
Date	Explanation	Ref	Debit	Credit	Balance
Jan. 1Jan. 15July 1Aug. 1Dec. 1Dec. 15Dec. 31
Jan. 1Jan. 15July 1Aug. 1Dec. 1Dec. 15Dec. 31

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Prepare a retained earnings statement for the year. (List items that increase retained earnings first.)

KARP COMPANY Retained Earnings Statement December 31, 2017For the Quarter Ended December 31, 2017For the Year Ended December 31, 2017
Cash Dividends?CommonCash Dividends?PreferredCorrection of 2016 Depreciation ExpenseDividendsExpensesNet Income / (Loss)Balance, January 1, as reportedBalance, January 1, as adjustedBalance, December 31RevenuesStock Dividends?CommonTotal ExpensesTotal Revenues	$
Cash Dividends?CommonCash Dividends?PreferredCorrection of 2016 Depreciation ExpenseDividendsExpensesNet Income / (Loss)Balance, January 1, as reportedBalance, January 1, as adjustedBalance, December 31RevenuesStock Dividends?CommonTotal ExpensesTotal Revenues	( )
Cash Dividends?CommonCash Dividends?PreferredCorrection of 2016 Depreciation ExpenseDividendsExpensesNet Income / (Loss)Balance, January 1, as reportedBalance, January 1, as adjustedBalance, December 31RevenuesStock Dividends?CommonTotal ExpensesTotal Revenues
AddLess:	Cash Dividends?CommonCash Dividends?PreferredCorrection of 2016 Depreciation ExpenseDividendsExpensesNet Income / (Loss)Balance, January 1, as reportedBalance, January 1, as adjustedBalance, December 31RevenuesStock Dividends?CommonTotal ExpensesTotal Revenues

AddLess:
Cash Dividends?CommonCash Dividends?PreferredCorrection of 2016 Depreciation ExpenseDividendsExpensesNet Income / (Loss)Balance, January 1, as reportedBalance, January 1, as adjustedBalance, December 31RevenuesStock Dividends?CommonTotal ExpensesTotal Revenues	$
Cash Dividends?CommonCash Dividends?PreferredCorrection of 2016 Depreciation ExpenseDividendsExpensesNet Income / (Loss)Balance, January 1, as reportedBalance, January 1, as adjustedBalance, December 31RevenuesStock Dividends?CommonTotal ExpensesTotal Revenues
Cash Dividends?CommonCash Dividends?PreferredCorrection of 2016 Depreciation ExpenseDividendsExpensesNet Income / (Loss)Balance, January 1, as reportedBalance, January 1, as adjustedBalance, December 31RevenuesStock Dividends?CommonTotal ExpensesTotal Revenues

Cash Dividends?CommonCash Dividends?PreferredCorrection of 2016 Depreciation ExpenseDividendsExpensesNet Income / (Loss)Balance, January 1, as reportedBalance, January 1, as adjustedBalance, December 31RevenuesStock Dividends?CommonTotal ExpensesTotal Revenues	$

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Prepare a stockholders? equity section at December 31, 2017. (Enter account name only and do not provide descriptive information.)

KARP COMPANY Balance Sheet (Partial) December 31, 2017For the Year Ended December 31, 2017For the Quarter Ended December 31, 2017
Additional Paid-in CapitalCapital StockCurrent AssetsCurrent LiabilitiesIntangible AssetsLong-term InvestmentsLong-term LiabilitiesPaid-in CapitalProperty, Plant and EquipmentStockholders' EquityTotal Additional Paid-in CapitalTotal AssetsTotal Capital StockTotal Current AssetsTotal Current LiabilitiesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Stockholders' EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Paid-in CapitalTotal Paid-in Capital and Retained EarningsTotal Property, Plant and EquipmentTotal Stockholders' Equity
Additional Paid-in CapitalCapital StockCurrent AssetsCurrent LiabilitiesIntangible AssetsLong-term InvestmentsLong-term LiabilitiesPaid-in CapitalProperty, Plant and EquipmentStockholders' EquityTotal Additional Paid-in CapitalTotal AssetsTotal Capital StockTotal Current AssetsTotal Current LiabilitiesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Stockholders' EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Paid-in CapitalTotal Paid-in Capital and Retained EarningsTotal Property, Plant and EquipmentTotal Stockholders' Equity
Additional Paid-in CapitalCapital StockCurrent AssetsCurrent LiabilitiesIntangible AssetsLong-term InvestmentsLong-term LiabilitiesPaid-in CapitalProperty, Plant and EquipmentStockholders' EquityTotal Additional Paid-in CapitalTotal AssetsTotal Capital StockTotal Current AssetsTotal Current LiabilitiesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Stockholders' EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Paid-in CapitalTotal Paid-in Capital and Retained EarningsTotal Property, Plant and EquipmentTotal Stockholders' Equity
	$
	$


Additional Paid-in CapitalCapital StockCurrent AssetsCurrent LiabilitiesIntangible AssetsLong-term InvestmentsLong-term LiabilitiesPaid-in CapitalProperty, Plant and EquipmentStockholders' EquityTotal Additional Paid-in CapitalTotal AssetsTotal Capital StockTotal Current AssetsTotal Current LiabilitiesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Stockholders' EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Paid-in CapitalTotal Paid-in Capital and Retained EarningsTotal Property, Plant and EquipmentTotal Stockholders' Equity
Additional Paid-in CapitalCapital StockCurrent AssetsCurrent LiabilitiesIntangible AssetsLong-term InvestmentsLong-term LiabilitiesPaid-in CapitalProperty, Plant and EquipmentStockholders' EquityTotal Additional Paid-in CapitalTotal AssetsTotal Capital StockTotal Current AssetsTotal Current LiabilitiesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Stockholders' EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Paid-in CapitalTotal Paid-in Capital and Retained EarningsTotal Property, Plant and EquipmentTotal Stockholders' Equity


Additional Paid-in CapitalCapital StockCurrent AssetsCurrent LiabilitiesIntangible AssetsLong-term InvestmentsLong-term LiabilitiesPaid-in CapitalProperty, Plant and EquipmentStockholders' EquityTotal Additional Paid-in CapitalTotal AssetsTotal Capital StockTotal Current AssetsTotal Current LiabilitiesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Stockholders' EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Paid-in CapitalTotal Paid-in Capital and Retained EarningsTotal Property, Plant and EquipmentTotal Stockholders' Equity
Additional Paid-in CapitalCapital StockCurrent AssetsCurrent LiabilitiesIntangible AssetsLong-term InvestmentsLong-term LiabilitiesPaid-in CapitalProperty, Plant and EquipmentStockholders' EquityTotal Additional Paid-in CapitalTotal AssetsTotal Capital StockTotal Current AssetsTotal Current LiabilitiesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Stockholders' EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Paid-in CapitalTotal Paid-in Capital and Retained EarningsTotal Property, Plant and EquipmentTotal Stockholders' Equity

Additional Paid-in CapitalCapital StockCurrent AssetsCurrent LiabilitiesIntangible AssetsLong-term InvestmentsLong-term LiabilitiesPaid-in CapitalProperty, Plant and EquipmentStockholders' EquityTotal Additional Paid-in CapitalTotal AssetsTotal Capital StockTotal Current AssetsTotal Current LiabilitiesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Stockholders' EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Paid-in CapitalTotal Paid-in Capital and Retained EarningsTotal Property, Plant and EquipmentTotal Stockholders' Equity		$

Problem 14-2A The stockholders' equity accounts of Karp Company at January 1, 2017, are as follows. Preferred Stock, 6%, $50 par Common Stock, $3 par Paid-in Capital in Excess of ParPreferred Stock Paid-in Capital in Excess of ParCommon Stock Retained Earnings $645,000 472,500 199,000 291,000 798,000 There were no dividends in arrears on preferred stock. During 2017, the company had the following transactions and events. July 1 Aug. 1 Sept. 1 Dec. 1 15 31 31 Declared a $0.60 cash dividend per share on common stock. Discovered $27,000 understatement of depreciation expense in 2016. (Ignore income taxes.) Paid the cash dividend declared on July 1. Declared a 15% stock dividend on common stock when the market price of the stock was $17 per share. Declared a 6% cash dividend on preferred stock payable January 15, 2018. Determined that net income for the year was $300,000. Recognized a $194,000 restriction of retained earnings for plant expansion. Don't show me this message again for the assignment Journalize the transactions, events, and closing entries for net income and dividends. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit (To close net income) (To close cash dividends) (To close stock dividends) Don't show me this message again for the assignment Link to Text Link to Text Link to Text Enter the beginning balances in the accounts, and post to the stockholders' equity accounts. (Note: Open additional stockholders' equity accounts as needed.) (Post entries in the order of journal entries presented in the previous part.) Preferred Stock Date Explanation Re Debit f Balance Credit Balance Credit Balance Credit Balance Credit Balance Credit Balance Credit Balance Common Stock Date Explanation Re Debit f Balance Common Stock Dividends Distributable Date Explanation Re Debit f Paid-in Capital in Excess of ParPreferred Stock Date Explanation Re Debit f Balance Paid-in Capital in Excess of ParCommon Stock Date Explanation Re Debit f Balance Retained Earnings Date Explanation Re Debit f Balance Prior period adjustment depreciation expense understated Net income Cash dividends Stock dividends Cash Dividends Date Explanation Re Debit f Credit Balance Re Debit f Credit Balance Stock Dividends Date Explanation Don't show me this message again for the assignment Link to Text Link to Text Link to Text Prepare a retained earnings statement for the year. (List items that increase retained earnings first.) KARP COMPANY Retained Earnings Statement $ ( ) : : $ $ Don't show me this message again for the assignment Link to Text Link to Text Link to Text Prepare a stockholders' equity section at December 31, 2017. (Enter account name only and do not provide descriptive information.) KARP COMPANY Balance Sheet (Partial) $ $ $