The stockholders' equity accounts of Karp Company at January 1, 2017, are as follows:

Common Stock, $1 par 160,000

Paid-in Capital in Excess of Par - Common Stock 60,000

Retained Earnings 120,000

During 2017, the company had the following transactions and events.

July 1 Declared a $0.10 cahs dividend per share on common stock

Aug 1 Discovered $2,000 understatement of depreciation expense in 2016 (Ignore income taxes)

Sept 1 Paid the cash dividend declared on July 1

Dec 1 Declared a 10%5 stock dividend on common stock when the market price of the stock was $3.6 per share

Dec 31 Determined that net income for the year was $71,000

Dec 31 Recognized a $20,000 restriction of retained earnings for plant expansion

Jounalize the transactions, events, and closing entries for net income and dividends!