Marx Corporation, a publicly traded company, is authorized to issue 196,000 $4 noncumulative preferred shares and an unlimited number of common shares. On January 1, 2021, the general ledger contained the following shareholders equity accounts:

Preferred shares (8,700 shares issued)	$469,800
Common shares (67,900 shares issued)	1,086,400
Contributed surplus	27,000
Retained earnings	877,000
Accumulated other comprehensive income	10,900

The following equity transactions occurred in 2021:

Feb.	6		Issued 9,000 preferred shares for $549,000.
Apr.	6		Issued 19,400 common shares for $572,300.
	27		Repurchased and retired 2,800 common shares at $18 per share. The balance in the Contributed Surplus account arose from the repurchase of common shares in prior years.
May	29		Declared a semi-annual cash dividend to the preferred shareholders of record at June 12, payable July 1.
Aug.	22		Issued 8,700 common shares in exchange for a building. At the time of the exchange, the building was valued at $157,800 and the common shares at $142,000.
Dec.	14		The board of directors decided there were insufficient funds to declare the semi-annual dividend to the preferred shareholders.
	31		Net income for the year was $556,000.

Prepare closing entries on December 31. One is to close net income/loss. Second one is to close dividends