The stockholders' equity accounts of Karp Company at January 1, 2017, are as follows: Preferred Stock, 6%, $100 par $600,000 Common Stock, $5 par 500,000 Paid-in Capital in Excess of ParPreferred Stock 190,000 Paid-in Capital in Excess of ParCommon Stock 297,500 Retained Earnings 800,000 Treasury Stock (10,000 shares) 100,000 There were no dividends in arrears on preferred stock. During 2017, the company had the following transactions and events. July 1 Declared a $1 cash dividend per share on common stock. Sept. 1 Paid the cash dividend declared on July 1. Oct 1 Reissued the treasury stock for $100,000 Dec. 1 Declared and issued a 10% stock dividend on common stock when the market price of the stock was $15 per share. 15 Declared a 6% cash dividend on preferred stock payable January 15, 2018. 31 Determined that net income for the year was $350,000.Closed income summary. Closed the dividends accounts. (a)Journalize the transactions, events, and 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. It was discovered that 2016 net income was understated by $50,000