Supplemental #4 The stockholders' equity section of Karp Company at January 1, 2021 follows: Preferred Stock, 6%, $50 par $600,000 Common Stock, $5 par $800,000 Paid in Capital in excess of Par-Preferred $200,000 Pald in Capital in excess of Par-Common $300,000 Retained Earnings $800,000 There were $3,000 of preferred dividends in arrears on January 1, 2021 During 2021, the company had the following transactions and events. Prepare the journal entries and the stockholders' equity. 15-Jun Issued 10,000 shares of preferred stock at $90. 1-Jul Declared $72,000 of cash dividends to shareholders. 1-Sep Paid the cash dividend declared on July 1 15-Sep Announced a 2 for 1 common stock split when the market price was $38 1-Oct Purchased 10,000 shares of common for the treasury at $20 per share 1-Dec Declared a 10% stock dividend on the common stock when the market price was $20 per share. 15-Dec Sold 4,000 shares of treasury stock for $30 per share 31-Dec Closed the net income for 2021 of $650,000 Stockholders' Equity at December 31, 2021 Preferred Stock, 6%, $50 par, 22,000 shares issued and outstanding Common Stock, $2.5 par, 351,000 sh issued, 341,000 sh outstanding Preferred Stock Paid in Capital in excess of par Common Stock Paid in Capital in excess of par Paid in Capital in excess of par-Treasury Stock Total Paid in Capital Retained Earnings Less: Treasury Stock, 6000 Common Shares @ $20 per share Total Stockholders' Equity