The post-closing trial balance of Carla Vista Corporation at December 31, 2021, contains the following shareholders equity accounts:

$5 noncumulative preferred shares (8,800 issued)		$1,012,000
Common shares (385,400 issued)		1,913,600
Retained earnings		3,141,100

A review of the accounting records reveals the following:

1.		The January 1, 2021, balance in Preferred Shares was $1,012,000, Common Shares was $1,248,000 (312,000 shares), the balance in Contributed SurplusReacquisition of Common Shares was $29,400, and the balance in Retained Earnings was $2,438,000.
2.		One of the companys shareholders needed cash for a personal expenditure. On January 15, the company agreed to reacquire 19,600 shares from this shareholder for $7 per share.
3.		On July 1, the company corrected a prior period error that resulted in an increase to the Long-Term Investment account, as well as to the prior years profit of $248,000 before income tax.
4.		On October 1, 93,000 common shares were sold for $8 per share.
5.		The preferred shareholders dividend was declared and paid in 2021 for two quarters. Due to a cash shortage, the last two quarters dividends were not declared or paid.
6.		Profit for the year before income tax was $758,000. The company has a 25% income tax rate.

A) Prepare entries to close dividends and the Income Summary account and post.

B) Prepare a statement of changes in shareholders equity for the year.