Lilbourg Company had the following equity accounts on January $1,2022$: Common Stock $(1$

par$)800,000,$ Paid$-$in Capital in Excess of Par $1,000,000,$ and Retained Earnings

$200,000.$ In $2022,$ the company had the following treasury stock transactions.

Apr. $1$ Purchased $10,000$ shares at $7$ per share.

July $1$ Sold $1,600$ shares at $10$ per share.

Oct. $1$ Sold $3,400$ shares at $9$ per share.

Dec. $1$ Sold $2,000$ shares at $5$ per share.

Lilbourg Company uses the cost method of accounting for treasury stock. In $2022,$ the

company reported net income of $80,000($Revenues $120,000$ and Expenses $40,000).$

Required:

Journalize the treasury stock transactions, and prepare the closing entry on

December $31,2022,$ for net income.

Prepare the equity section for Lilbourg Company on December $31,2022.$