Exercise 2 (30 points) Troubador Limited has the following equity accounts on January 1, 2020: Share Capital- Ordinary (6 par, 100,000 shares issued) 600,000, Share Premium-Ordinary 150,000, and Retained Earnings 100,000. In 2020, the company had the following treasury share transactions. April. 1: Purchased 5,000 shares at 10 per share. May 1: Sold 800 shares at 13 per share. Sept. 1: Sold 2,000 shares at 10 per share. Nov. 1: Sold 1,500 shares at 7 per share. Troubador uses the cost method of accounting for treasury shares. In 2020, the company reported net income of 40,000. Instructions a. Journalize the treasury share transactions, and prepare the closing entry at December 31, 2020, for net income. b. Open T-accounts for (1) Share Premium-Treasury, (2) Treasury Shares, and (3) Retained Earnings. Post to these accounts (without using a posting reference) c. Prepare the equity section for Troubador Limited at December 31, 2020