please explain how you get retained earnings from question b?

E13.7 (LO 2), AP on January 1, 2022, the stockholders' equity section of Newlin Corporation shows common stock ($5 par value) $1,500,000; paid-in capital in excess of par $1,000,000; and retained earn- ings $1,200,000. During the year, the following treasury stock transactions occurred. Mar. 1 Purchased 50,000 shares for cash at $15 per share. July 1 Sold 10,000 treasury shares for cash at $17 per share. Sept. 1 Sold 8,000 treasury shares for cash at $14 per share. Instructions a. Journalize the treasury stock transactions. b. Restate the entry for September 1, assuming the treasury shares were sold at $12 per share. F138 (2) AR Pinohart Carmart