Question p12. 3

Bec Sold 10 shares eported net 2.5 " post- wing equity accounts Share Caps Share Cap Share Pre Elston uses the cost method of account of 34.000 Instructions 3. Journalize the treasury share net income b. Open accounts for (1) Share Post to these accounts as the treasury share transactions, and prepare the closing entry at Decemba Retained a Share P: Ordinas Retain es 9,000 ounts for (1) Share Premium Treasury, (2) Treasury Shares, and (3) Ret these accounts using J10 as the posting reference. e equity section for Elston Limited at December 31, 2020. review of the ac 26,000 sactions, (CO 2, 4) The equity accounts of Terrell SE on January 1, 2020, were as follows 1.450 1,8165 508 Share Capital Preference (99 50 par, cumulative. 10,000 shares authorized) CapitalOrdinary (1 stated value, 2,000,000 shares authorized) Share Premium-Preference Share Premium-Ordinary Retained Earnings Treasury Shares-Ordinary (20,000 shares) During 2020, the company 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. 1. No errors ha income. 2. Preference January 1 3. Authoriz 4. The Jan 5. On Jul 6. A cash on Od 7. On shar 8. Ne 9. Od Instr a. 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, 2020, including the disclosure of the preference dends in arrears