The stockholders’ equity accounts of Karp Company at January 1, 2014, are as follows. Preferred Stock,6%,$50par $615,000 Common Stock,$4par 632,000 Paid in Capital in Excess of Par—Preferred Stock 203,000 Paid in Capital in Excess of Par—Common Stock 300,500 Retained Earnings 799,400 There were no dividends in arrears on preferred stock. During 2014, the company had the following transactions and events. July 1 Declared a$0.60cash dividend per share on common stock. Aug. 1 Discovered$29,000understatement of 2013 depreciation on equipment. (Ignore income taxes.) Sept.
The stockholders’ equity accounts of Karp Company at January 1, 2014, are as follows.? Preferred Stock, 6%, $50 par??$615,000??Common Stock, $4 par??632,000??Paid in Capital in Excess of Par—Preferred Stock??203,000??Paid in Capital in Excess of Par—Common Stock??300,500??Retained Earnings??799,400???There were no dividends in arrears on preferred stock. During 2014, the company had the following transactions and events.? July 1??Declared a $0.60 cash dividend per share on common stock.??Aug. 1??Discovered $29,000 understatement of 2013 depreciation on equipment. (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 $19 per share.??15??Declared a 6% cash dividend on preferred stock payable January 15, 2015.??31??Determined that net income for the year was $310,800.??31??Recognized a $216,200 restriction of retained earnings for plant expansion.?? Requirements: Journalize the transactions, events, and closing entries for net income and dividends. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select “No Entry” for the account titles and enter 0 for the amounts.) Journalize the transactions, events, and closing entries for net income and dividends. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select “No Entry” for the account titles and enter 0 for the amounts.) Date?Account Titles and Explanation?Debit?Credit??July 1??????????Aug. 1??????????Sept. 1??????????Dec. 1???????????????Dec. 15??????????Dec. 31???????????(To close net income)???????????????(To close cash dividends)???????????????(To close stock dividends)??????? ? HYPERLINK “http://edugen.wileyplus.com/edugen/shared/assignment/test/qview.uni?id=quest2424825entrance1&selected_question=quest2424825&operation=take question” o “Show List of…
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The stockhold….docx