On December 31, 2021, Carla Vista Co. had 1,300,000 shares of $6 par common stock issued and outstanding. At December 31, 2021, stockholders equity had the amounts listed here.

Common Stock $7,800,000

Additional Paid-in Capital 1,840,000

Retained Earnings 1,215,000

Transactions during 2022 and other information related to stockholders equity accounts were as follows.

1. On January 10, issued at $105 per share 127,000 shares of $104 par value, 8% cumulative preferred stock.

2. On February 8, reacquired 15,100 shares of its common stock for $11 per share.

3. On May 9, declared the yearly cash dividend on preferred stock, payable June 10, to stockholders of record on May 31.

4. On June 8, declared a cash dividend of $1.25 per share on the common stock outstanding, payable on July 10, to stockholders of record on July 1.

5. Net income for 2022 was $3,553,000.

Record the journal entries that are required for items 15 above.

Date Account Titles and Explanation Debe Credit (To close net income) To close cash dividends)