The stockholders' equity accounts of Karp Company at January 1, 2017, are as follows Preferred Stock, 6%, $50 par Common Stock, $5 par Paid-in Capital in Excess of Par-Preferred Stock Paid-in Capital in Excess of Par Common Stock Retained Earnings $590,000 780,000 210,000 287,500 843.500 dyidendsin arrars on preferred stock. During 2017. hpuny had the flliving transactins and vents There were no diyidends in arrears on preferred stock. During 2017, the company had the following transactions and events July 1 Declared a $0.80 cash dividend per share on common stock Aug. 1 Discovered $29.000 understatement of depreciation expense in 2016. (Ignore income taxes.) Sept. 1 Paid the cash dividend declared on July i Dec, t Declared a 10% stock dividend on common stock when the market price of the stock was $20 per share. 15 31 31 Declared a 6% cash dividend on preferred stock payable January 15.2018. Determined that net income for the year was $387,000. Recognized a $191.000 restriction of recained earnings for plant expansion. Debit Credit of Ref Debit Prepare a retained earnings statement for the year, (List items that increase retained earnings first.) KARP COMPANY Retained Earnings Statement Prepare KARP COMPANY Balance Sheet (partial)