Exercise 13-8 Share dividends, share splits, retirements, equity section of balance sheet LO1, 2 Mady Entertainment Inc. showed the following equity account balances on the December 31, 2019, balance sheet: Common shares, unlimited authorized shares, 660,000 shares issued and outstanding Retained earnings $3,960,000 2,030,000 During 2020, the following selected transactions occurred: Apr. 1 Repurchased and retired 172,000 common shares at $7.20 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 $4.20, $3.96, and $4.10, respectively. 20 Distributed the share dividend declared December 1. 31 closed the credit balance of $756,000 in the Income Summary account. Required: a. Journalize the transactions above (assuming the retirements were the first ever recorded by Mady Entertainment Inc.). The company does not use a share dividends account. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) b. Prepare the equity section on the December 31, 2020, balance sheet