Question $4$ of $5$

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Crane Corporation had the following stockholders' equity accounts on January $1,2027$: Common Stock $($ $$5$ par$)$ $$500,000,$ Paid$-$in Capital in Excess of Par$-$Common Stock $$210,000,$ and Retained Earnings $$110,000.$ In $2027,$ the company had the following treasury stock transactions.

Mar. $1$ Purchased $6,000$ shares at $$8$ per share.

June $1$ Sold $1,000$ shares at $$13$ per share.

Sept. $1$ Sold $2,000$ shares at $$10$ per share.

Dec. $1$ Sold $1,500$ shares at $$7$ per share.

Crane Corporation uses the cost method of accounting for treasury stock. In $2027,$ the company reported net income of $$28,000.$

$($a$)$

Journalize the treasury stock transactions, and prepare the closing entry at December $31,2027,$ for net income. $($Record journal entries in the order presented in the problem. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select $"$No Entry" for the account titles and enter $0$ for the amounts. List debit entry before credit entry.$)$

Date

Account Titles and Explanation

Debit

Credi