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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

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

$

3,960,000

Retained earnings

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.

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