Happy Valley Corporation had the following information regarding their shareholders equity accounts:

Common shares, 50,000 shares authorized, 20,000 shares issued and outstanding

$200,000

Retained earnings

132,000

On May 1, of the current year, the company repurchased and retired 4,000 common shares at $3 per share.

Required:

Prepare the journal entry to record the purchase and retirement of common shares. No explanations are required, but show all calculations below your journal entry