The balance sheet of Toronto Exports Inc. at December 31, 2019, presented the following shareholders’ equity information:

Common shares, 3,000,000 shares authorized, 500,000 shares
issued and outstanding ......................... $2,955,000
Retained earnings .................................... 1,820,000
Total shareholders’ equity .................... $4,775,000

During 2020, Toronto Exports Inc. completed the following selected transactions:

Mar. 29 Declared a 10 percent stock dividend on the common shares. The market value of Toronto Exports Inc. common shares was $5.00 per share. The record date was April 20, with distribution set for May 29.

May 29 Issued the stock dividend shares.

Jul. 30 Repurchased 30,000 of the company’s own common shares at $5.00 per share.

Oct. 4 Sold 20,000 common shares for $7.50 per share.

Dec. 27 Declared a $0.20 per share dividend on the common shares outstanding. The date of record was January 17, 2021, and the payment date was January 31, 2021.

31 Closed the $875,000 net income to Retained Earnings.

Required

1. Record the transactions in the general journal.

2. Prepare the statement of shareholders’ equity for the year ended December 31, 2020.

3. Calculate earnings per share at December 31, 2020. Use issue dates in your calculations.