Question 2

On December 31, 2016, Crane Corporation had the following shareholders equity accounts:

CRANE CORPORATION Balance Sheet (partial) December 31, 2016
Shareholders equity
Common shares (unlimited number of shares authorized, 90,000 issued)		$1,102,000
Retained earnings		590,000
Total shareholders equity		$1,692,000

During the year, the following transactions occurred:

Jan.		15		Declared a $1 per share cash dividend to shareholders of record on January 31, payable February 15.
July		1		Announced a 2-for-1 stock split. The market price per share on the date of the announcement was $12.
Dec.		15		Declared a 15% stock dividend to shareholders of record on December 30, distributable on January 15. On December 15, the market price of each share was $6; on December 30, $8; and on January 15, $7.
		31		Determined that profit before income tax for the year was $424,000. The company has a 30% income tax rate.

Journalize the transactions and closing entries. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" Date Account Titles and Explanation Debit Credit July Memo: 2-for-1 stock split increases the number of shares to (To dose income summary account) (To dose dividend accounts) Enter the beginning balances and post the entries in part (a) to the shareholders' equity accounts. (Note: Open additional shareholders' equity accounts as needed.) Common Shares Ref. Debit Credit Balance Date Explanation Jan. 1 Balance Stock Dividends Distributable Ref. Debit Credit Balance Date Explanation Dec. 15 Cash Dividends-Common Explanation Ref. Debit Credit Date Balance Jan. 15 Dec. 31 Closing entry J1 Stock Dividends Date Explanation Ref. Debit Dec. 15 J1 Credit Balance Dec. 31 Closing entry 11 Retained Earnings Dale Explanation Rel. Debit Jan. 1 Balance Credit Balance Dec. 31 Closing entry J1 Dec. 31 Closing entry J1 Prepare the shareholders' equity section of the balance sheet at December 31, 2017