Question & Answer: Preferred Stock, 6%, $50 par $625,000 Common Stock, $3 par 480,000 Paid-in Capital in Excess of Par—Preferred Stock 207,500…..

Preferred Stock, 6%, $50 par $625,000 Common Stock, $3 par 480,000 Paid-in Capital in Excess of Par—Preferred Stock 207,500 Paid-in Capital in Excess of Par—Common Stock 293,000 Retained Earnings 779,000 There were no dividends in arrears on preferred stock. During 2017, the company had the following transactions and events. July 1 Declared a $0.70 cash dividend per share on common stock. Aug. 1 Discovered $20,500 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 $16 per share. 15 Declared a 6% cash dividend on preferred stock payable January 15, 2018. 31 Determined that net income for the year was $352,000. 31 Recognized a $199,000 restriction of retained earnings for plant expansion. Collapse question part (a) 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. Record journal entries in the order presented in the problem.)