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

Common shares, unlimited authorized shares, 6600,000 shares issued and outstanding	$	3,850,000
Retained earnings		2,580,000

During 2020, the following selected transactions occurred:

Apr.	1		Repurchased and retired 150,000 common shares at $7.60 per share; this is the first retirement recorded by Mady.
June	1		Declared a 2:1 share split to shareholders of record on June 12, distributable June 30.
Dec.	1		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 $4.60, $4.36, and $4.50, respectively.
	20		Distributed the share dividend declared December 1.
	31		Closed the credit balance of $756,000 in the Income Summary account.

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Date Note Disclosure April 01, 2020 Note disclosure not required June 01, 2020 Note disclosure required December 01, 2020 Note disclosure not required December 20, 2020 Note disclosure not required December 31, 2020 Note disclosure not required Amount b. Prepare the equity section on the December 31, 2020, balance sheet. MADY ENTERTAINMENT INC. Equity Section of Balance Sheet December 31, 2020 Contributed capital: Common shares, unlimited shares authorized, 880,000 shares issued and outstanding Retained earnings Total equity GA O Date Note Disclosure April 01, 2020 Note disclosure not required June 01, 2020 Note disclosure required December 01, 2020 Note disclosure not required December 20, 2020 Note disclosure not required December 31, 2020 Note disclosure not required Amount b. Prepare the equity section on the December 31, 2020, balance sheet. MADY ENTERTAINMENT INC. Equity Section of Balance Sheet December 31, 2020 Contributed capital: Common shares, unlimited shares authorized, 880,000 shares issued and outstanding Retained earnings Total equity GA O

Answer rating: 100% (QA)

Part A Date general journal debit credit April 1 2020 common shares 3850000550000150000 1050000 ... View the full answer