Yeong Ltd. reported the following shareholders’ equity information on March 26, 2020:

Common shares, unlimited shares authorized, 140,000 shares
issued and outstanding ................................. $420,000
Retained earnings ............................................ 475,000
Total shareholders’ equity ............................ $895,000

On May 3, 2020, the company repurchased and cancelled 5,000 common shares at $3.50 per share.

Required

1. Journalize the May 3 transaction.

2. Prepare the shareholders’ equity section of the balance sheet at May 31, 2020.

3. How many common shares are outstanding after the share repurchase?