P11-3A The equity accounts of Terrell SE on January 1, 2017, were as follows. Journalize and post Share Capital-Preference (9%, 50 par, cumulative, transactions, prepare 10,000 shares authorized) 400,000 section. Share CapitalOrdinary (1 stated value, 2,000,000 shares authorized) 1,000,000 (LO 2, 3, 4,7) Share Premium-Preference 100,000 Share Premium-Ordinary 1,450,000 Retained Earnings 1,816,000 Treasury Shares-Ordinary (20,000 shares) 50,000 During 2017, the corporation had the following transactions and events pertaining to its equity. Feb. 1 Issued 30,000 ordinary shares for 120,000. Apr. 14 Sold 9,000 treasury shares-ordinary for 42,000. Sept. 3 Issued 7,000 ordinary shares for a patent valued at 32,000. Nov. 10 Purchased 1,000 ordinary shares for the treasury at a cost of 6,000. Dec. 31 Determined that net income for the year was 452,000. No dividends were declared during the year. Instructions (a) Journalize the transactions and the closing entry for net income. (b) Enter the beginning balances in the accounts, and post the journal entries to the equity accounts. (Use J5 for the posting reference.) (c) Prepare an equity section at December 31, 2017, including the disclosure of the prefer: (c) Total equity 5 ence dividends in arrears