Question p12. 3

F or the cost ecember 31, 20211. for ained Earnings Instructions - Journalize the treasury share transactions, and prepare the closing entry at December 31 net income. 1. Open accounts for (1) Share Premium-Treasury. (2) Treasury Shares, and (3) Retained Post to these accounts using Jlo as the posting reference. c. Prepare the equity section for Elston Limited at December 31, 2020. sury Shares 29.000 quity E726,000 P12.3 (LO 2, 4) The equity accounts of Terrell SE on January 1, 2020, were as follows. A review of th 1. No error income 2. Prefere Januar 3. Auth 4. The 5. On 6. A 400.000 1.000.000 50.000 on Share Capital Preference (9%. 50 par, cumulative, 10,000 shares authorized) Share Capital-Ordinary (1 stated value, 2,000,000 shares authorized) Share Premium-Preference 100.000 Share Premium-Ordinary 1,450,000 Retained Earnings 1,816,000 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. 7. O 8. N 9. Ins 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 divi- dends in arrears. uity P12.4 (LO 3,4) On January 1, 2020, Prasad SpA had the following equity accounts