The stockholders equity accounts of Holt Inc., at January 1, 2017, are as follows. Preferred Stock, $100 par, 7% $600,000 Common Stock, $10 par 900,000 Paid-in Capital in Excess of ParPreferred Stock 100,000 Paid-in Capital in Excess of ParCommon Stock 200,000 Retained Earnings 500,000 There were no dividends in arrears on preferred stock. During 2017, the company had the following transactions and events. July 1 Declared a $0.50 cash dividend per share on common stock. Aug. 1 Discovered a $72,000 overstatement of 2016 depreciation on equipment. (Ignore income taxes.) Sept. 1 Paid the cash dividend declared on July 1. Dec. 1 Declared a 10% stock dividend on common stock when the market price of the stock was $16 per share. 15 Declared a 7% cash dividend on preferred stock payable January 31, 2018. 31 Determined that net income for the year was $350,000. Instructions (a) Journalize the transactions and the closing entries for net income and dividends. (b) Enter the beginning balances in the accounts and post to the stockholders equity accounts. (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, 2017.