Mady Entertainment Inc. showed the following equity account balances on the December 31, 2016, balance sheet: $4,690,000 Common shares, unlimited authorized shares. 670,000 shares issued and outstanding Retained earnings 1,980,000 During 2017, the following selected transactions occurred: Apr. 1 Repurchased and retired 174,000 common shares at $8.20 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 $5.20, $4.96, and $5.10 respectively. 20 Distributed the share dividend declared December 1. 31 Closed the credit balance of $1,296,000 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.) Note Disclosure Amount Date April 01, 2017 June 01, 2017 December 01, 2017 December 20, 2017 December 31, 2017 b. Prepare the equity section on the December 31, 2017, balance sheet. MADY ENTERTAINMENT INC. Equity Section of Balance Sheet December 31, 2017 Contributed capital: Total equity Mady Entertainment Inc. showed the following equity account balances on the December 31, 2016, balance sheet: $4,690,000 Common shares, unlimited authorized shares. 670,000 shares issued and outstanding Retained earnings 1,980,000 During 2017, the following selected transactions occurred: Apr. 1 Repurchased and retired 174,000 common shares at $8.20 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 $5.20, $4.96, and $5.10 respectively. 20 Distributed the share dividend declared December 1. 31 Closed the credit balance of $1,296,000 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.) Note Disclosure Amount Date April 01, 2017 June 01, 2017 December 01, 2017 December 20, 2017 December 31, 2017 b. Prepare the equity section on the December 31, 2017, balance sheet. MADY ENTERTAINMENT INC. Equity Section of Balance Sheet December 31, 2017 Contributed capital: Total equity
