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

Common shares, unlimited authorized shares,
660,000 shares issued and outstanding ................................ $3,960,000
Retained earnings ....................................................................... 2,030,000

During 2020, the following selected transactions occurred:

March 1  Repurchased and retired 172,000 common shares at $7.20 per share; this is the first retirement recorded by Ozzi.
May 1 Declared a 2:1 share split to shareholders of record on May 12, distributable May 30.
Nov. 1 Declared a 10% share dividend to shareholders of record on November 10, distributable November 20. The market prices of the shares on November 1, November 10, and November 20 were $4.20, $3.96, and $4.10, respectively.

20 Distributed the share dividend declared November 1.

Dec. 31 Closed the credit balance of $1,296,000 in the Income Summary account.

Required

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

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