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

Preferred Stock, 6%, $50 par		$590,000
Common Stock, $5 par		780,000
Paid-in Capital in Excess of ParPreferred Stock		210,000
Paid-in Capital in Excess of ParCommon Stock		287,500
Retained Earnings		843,500

There were no dividends 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 1.
Dec. 1		Declared a 10% stock dividend on common stock when the market price of the stock was $20 per share.
15		Declared a 6% cash dividend on preferred stock payable January 15, 2018.
31		Determined that net income for the year was $387,000.
		Recognized a $191,000 restriction of retained earnings for plant expansion Jounalize the transactions, events and closing entries for net income and dividends. Enter the beginning balance in the accounts, and post to the stockholders' equity accounts Prepare a retained earnings statement for the year. (Recognized a $191,000 restriction of retained earnings for plant expansion. was done on December 31, the date wouldn't stay)