SOAL 2 P15-2A The stockholders' equity accounts of Greene Company at January 1, 2002, are as fol- lows. Preferred Stock, 9%, $50 par $600,000 Common Stock, $2 par 500,000 Paid-in Capital in Excess of Par Value-Preferred Stock 200,000 Paid-in Capital in Excess of Par Value-Common Stock 300,000 Retained Earnings 800,000 There were no dividends in arrears on preferred stock. During 2002, the company had the fol- lowing transactions and events. July 1 Declared a $0.50 cash dividend on common stock. Aug. 1 Discovered $45,000 understatement of 2001 depreciation. Ignore income taxes. Sept. 1 Paid the cash dividend declared on July 1. Dec. 1 Declared 10% stock dividend on common stock when the market value of the stock was $18 per share. 15 Declared a 9% cash dividend on preferred stock payable January 15, 2003. 31 Determined that net income for the year was $385,000. 31 Recognized a $200,000 restriction of retained earnings for plant expansion. Instructions (a) Journalize the transactions, events, and closing entries. (b) Enter the beginning balances in the accounts, and post to the stockholders' equity ac- counts. (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, 2002