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 $645,000 820,000 203,000 304,500 816,000 There were no dividends in arrears on preferred stock. During 2017, the company had the following transactions and events July 1 Aug. 1 Sept. 1 Dec. 1 15 31 31 Declared a $0.80 cash dividend per share on common stock Discovered $27,000 understatement of depreciation expense in 2016. (Ignore income taxes.) Paid the cash dividend declared on July 1. Declared a 10% stock dividend on common stock when the market price of the stock was $18 per share Declared a 6% cash dividend on preferred stock payable January 15, 2018. Determined that net income for the year was $383,000 Recognized a $212,000 restriction of retained earnings for plant expansion. Journalize the transactions, events, and closing entries for net income and dividends. (Credit account titles are automatically i entry is required, select "No Entry" for the account titles and enter O for the amounts. Record journal entries in the or Date Account Titles and Explanation Debit Credit