Madacy Entertainment Inc. showed the following equity account balances on the December 31, 2013, balance sheet:

Common shares, unlimited authorized shares,

680,000 shares issued and outstanding........................................................ $5,440,000

Retained earnings............................................................................................. 2,880,000

During 2014, the following selected transactions occurred:

Required
a. Journalize the transactions above (assuming the retirements were the first ever recorded by Madacy Entertainment Inc.).
b. Prepare the equity section on the December 31, 2014, balancesheet.

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Apr. June Dec. 1 1 1 Repurchased and retired 280,000 common shares at $8.40 per share; this is the first retirement recorded by Madacy 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 $4.40, $3.84, and $4.16 respectively. Distributed the share dividend declared December 1 Closed the credit balance of $1,296,000 in the Income Summary account. 20 31