P14.2 (LO 1, 2, 3) The equity accounts of Karp Outfitters at January 1, 2020, follows. There were no dividends in arrears on preference shares. During 2020, the company had the follow Discovered 25.000 understatement of depreciation expense in 2019. (Ignore income taxes.) Declared a 155 share dividend on ordinary shares when the market price of the shares we PTER 14 Corporations Dividends, Retained Earnings, and income Re post des shame Share Capital - Preference, 6% 50 par Share Capital-Ordinary, 5 par Share Premium Preference Share Premium-Ordinary Retained Earnings 600,000 800.000 200.000 300.000 800,000 1 transactions and events. July Declared a 0.60 cash dividend per share on ordinary shares. Aug 1 Sept. 1 Paid the cash dividend declared on July 1. Dec. 1 18 per share. 15 Declared a 6% cash dividend on preference shares payable January 15, 2021. 31 Determined that net income for the year was 355,000. 31 Established a 200,000 restriction of retained earnings for plant expansion. Instructions 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 equity accounts. (Note: Open adds. tional equity accounts as needed.) c. Prepare a retained earnings statement for the year. d. Prepare an equity section at December 31, 2020. balance 566,000 quity 2,898,000 Incine trial balance of Fortaleza SA at December 31, 2020, contains the