The Data Group Inc. had the following balances in its equity accounts at December 31, 2019:

Common shares, unlimited shares authorized;
200,000 shares issued and outstanding ........................... $2,400,000
Retained earnings ..................................................................... 400,000

During 2020, the following equity transactions occurred:

Apr.  15  Repurchased and retired 15,000 common shares at $10.40 per share.

May  1  Repurchased and retired 25,000 common shares at $13.60 per share.

Nov.  1  The board of directors declared a 2:1 share split effective on this date

Required

1. Prepare journal entries to account for the transactions during 2020 (assuming the retirements were the first ever recorded by The Data Group Inc.).

2. Prepare the company’s equity section on the December 31, 2020, balance sheet, assuming a loss for the year of $136,000.

Analysis Component: What does a share repurchase and retirement accomplish for The Data Group Inc.?