Mady Entertainment Inc. showed the following equity account balances on the December 31, 2019, balance sheet:

Common shares, unlimited authorized shares,570,000 shares issued and outstanding ...................................... $4,560,000Retained earnings ............................................................................. 2,480,000

During 2020, the following selected transactions occurred:

Required

a. Journalize the transactions above (assuming the retirements were the first ever recorded by Mady Entertainment Inc.).

b. Prepare the equity section on the December 31, 2020, balance sheet.

Transcribed Image Text:

Repurchased and retired 154,000 common shares at $8.80 per share; this is the first retirement recorded by Mady. 1 Declared a 2:1 share split to shareholders of record on June 12, distributable June 30. Declared a 10% share dividend to shareholders of record on December 10, distributable December 20. The market prices of the shares on December 1, December 10, and December 20 were $5.80, $5.56, and $5.70, respectively. 20 Аpг. June Dec. Distributed the share dividend declared December 1. Closed the credit balance of $756,000 in the Income Summary account. 31