Example $1)$ Share Retirement

ABC Co is incorporated under the CBCA. It has two classes of shares outstanding: preferred and common.

At December $31,2022,$ the following accounts and balances were included in shareholders' equity:

Preferred shares, $100,000$ shares authorized, callable at $$120$;$20,000$ shares issued $,$$$2,000,000$

Common shares, $5,000,000$ shares authorized; $1,000,000$ shares issued

$20,000,000$

Contributed surplus $-$ preferred

$100,000$

Contributed surplus $-$ common

$1,200,000$

Retained earnings

$$15,000,000$

During $2023,$ the following transactions occurred:

Jan. $28$

Redeemed $10,000$ preferred shares at the call price.

Feb. $28$

Retired $20,000$ common shares at $$15$ per share.

Prepare journal entries for these two transactions.