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

$5 noncumulative preferred shares (10,300 issued)		$1,081,500
Common shares (419,900 issued)		2,111,600
Retained earnings		3,170,350

A review of the accounting records reveals the following:

1.		The January 1, 2021, balance in Preferred Shares was $1,081,500, Common Shares was $1,338,000 (334,500 shares), the balance in Contributed SurplusReacquisition of Common Shares was $33,900, and the balance in Retained Earnings was $2,453,000.
2.		One of the companys shareholders needed cash for a personal expenditure. On January 15, the company agreed to reacquire 22,600 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 $263,000 before income tax.
4.		On October 1, 108,000 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 $773,000. The company has a 25% income tax rate.

Open general ledger accounts for the shareholders equity accounts listed in item (1) above and enter opening balances.

Preferred Shares
Date	Explanation	Ref.	Debit	Credit	Balance
Jan. 1	Balance
Common Shares
Date	Explanation	Ref.	Debit	Credit	Balance
Jan. 1	Balance
Contributed SurplusReacquisition of Common Shares
Date	Explanation	Ref.	Debit	Credit	Balance
Jan. 1	Balance
Retained Earnings
Date	Explanation	Ref.	Debit	Credit	Balance
Jan. 1	Balance

Prepare journal entries to record transactions (2) to (5) and post to general ledger accounts. (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. Record journal entries in the order presented in the problem.)

Date	Account Titles and Explanation	Debit	Credit
Jan. 15
	(To record reacquisition of common shares.)
Jan. 15Mar. 31Jun. 30Jul. 1Oct. 1
	(To record cash dividend.)
Jan. 15Mar. 31Jun. 30Jul. 1Oct. 1
	(To record cash dividend.)
Jan. 15Mar. 31Jun. 30Jul. 1Oct. 1
	(To record correction of error.)
Jan. 15Mar. 31Jun. 30Jul. 1Oct. 1
	(Issued common shares for cash.)

Preferred Shares
Date	Explanation	Ref.	Debit	Credit	Balance
Jan. 1	Balance				1,081,500
Common Shares
Date	Explanation	Ref.	Debit	Credit	Balance
Jan. 1	Balance				1,338,000
Jan. 15	Reacquisition of shares	J1
Oct. 1	Issue of shares	J1
Contributed SurplusReacquisition of Common Shares
Date	Explanation	Ref.	Debit	Credit	Balance
Jan. 1	Balance				33,900
Jan. 15	Reacquisition of shares	J1
Retained Earnings
Date	Explanation	Ref.	Debit	Credit	Balance
Jan. 1	Balance				2,453,000
Jan. 15	Reacquisition of shares	J1
July 1	Prior period error	J1

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

Date	Account Titles and Explanation	Debit	Credit
Dec. 31
	(To close Income Summary.)
Dec. 31
	(To close dividends to retained earnings.)

Preferred Shares
Date	Explanation	Ref.	Debit	Credit	Balance
Jan. 1	Balance				1,081,500
Common Shares
Date	Explanation	Ref.	Debit	Credit	Balance
Jan. 1	Balance				1,338,000
Jan. 15	Reacquisition of shares	J1	90,400		1,247,600
Oct. 1	Issue of shares