The stockholders’ equity accounts of Motz Inc., at January 1, 2012, are as follows.

The stockholders’ equity accounts of Motz Inc., at January 1, 2012, are as follows.Preferred Stock, $100 par, 7%$600,000Common Stock, $10 par900,000Paid-in Capital in Excess of Par—Preferred Stock100,000Paid-in Capital in Excess of Par—Common Stock200,000Retained Earnings500,000There were no dividends in arrears on preferred stock. During 2012, the company had the following transactions and events.July1Declared a $0.50 cash dividend on common stock.Aug.1Discovered a $72,000 overstatement of 2011 depreciation on equipment. Ignore incometaxes.Sept.1Paid the cash dividend declared on July 1.Dec.1Declared a 10% stock dividend on common stock when the market value of the stockwas $16 per share.15Declared a 7% cash dividend on preferred stock payable January 31, 2013.31Determined that net income for the year was $350,000.Instructions(a) Journalize the transactions and the closing entry for net income.(b) Enter the beginning balances in the accounts and post to the stockholders’ equity accounts.(c) Prepare a retained earnings statement for the year.(d) Prepare a stockholders’ equity section at December 31, 2012.