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The ledger of Crane Limited at October 31, 2021, contains the following summary data: Cash dividends—common $128,000 Common shares 653,000 Depreciation expense 100,000 Service revenue 1,474,000 Operating expenses 934,000 Interest expense 63,000 Retained earnings, November 1, 2020 578,000 Your analysis reveals the following additional information: 1
The ledger of Crane Limited at October 31, 2021, contains the following summary data:
| Cash dividends—common | $128,000 | |
| Common shares | 653,000 | |
| Depreciation expense | 100,000 | |
| Service revenue | 1,474,000 | |
| Operating expenses | 934,000 | |
| Interest expense | 63,000 | |
| Retained earnings, November 1, 2020 | 578,000 |
Your analysis reveals the following additional information:
| 1. | The company has a 25% income tax rate. | |
| 2. | On March 19, 2021, Crane discovered an error made in the previous fiscal year. A $64,000 payment of a note payable had been recorded as interest expense. | |
| 3. | On April 10, 2021, common shares costing $84,000 were reacquired for $108,000. This is the first time the company has reacquired common shares. |
Prepare a journal entry to correct the prior period error.
Prepare the journal entry to record the reacquisition of common shares
Calculate profit for the year ended October 31, 2021
Prepare the statement of retained earnings for the company for the year ended October 31, 2021.
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