The stockholders' equity accounts of Karp Company at January 1, 2017, are as follows. Common Stock, $5 par 800,000 Paid-in Capital in Excess of ParCommon Stock 300,000 Retained Earnings 600,000 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 $25,000 understatement of depreciation expense in 2016. (Ignore income taxes.) Sept. I 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 $18 per share. 31 Determined that net income for the year was $355,000. 31 Recognized a $100,000 restriction of retained earnings for plant expansion. Instructions (a) Journalize the transactions, events, and closing entries for net income and dividends