4 BACK NEXT Question 2 Pronghorn Limited had the following equity accounts on January 1, 2017: Share Capital - Ordinary (4 par) 354,300, Share Premium-Ordinary 196,730, and Retained Earnings 109,360. In 2017, the company had the following treasury share transactions. Mar. 1 Purchased 6,000 shares at 9 per share. June 1 Sold 996 shares at E13 per share. Sept.1 Sold 1,780 shares at 610 per share, Dec. 1 Sold 1,000 shares at 7 per share. Pronghorn uses the cost method of accounting for treasury shares. In 2017, the company reported net income of 28,640. CALCULATOR PRINTER VERSION BACK Journalize the treasury share transactions, and prepare the closing entry at December 31, 2017, for net income. (Credit account titles are automatically indent when amount is entered. Do not indent manually.) Date Account Tities and Explanation Debit Credit e Dec. 1 Open accounts for (1) Share Premium-Treasury, (2) Treasury Shares, and (3) Retained Earnings. Post to these accounts using 110 as the posting reference (Post entries in the order of journal entries presented in the previous part) Share Premium-Treasury Date Explanation Ref J10 Debit Credit Balance 310 210 Treasury Shares Date Explanation Ref 310 Debit Credit Balance 310 310 310 Retained Earnings Date Explanation Rel Balance Debit Credit Balance 310 Prepare the equity section for Pronghorn Limited at December 31, 2017 PRONGHORN LIMITED Statement of Financial Position (Partial) E