Sept
Subject:AccountingPrice: Bought3
Sept. 1 P11-2A Elston Limited had the following equity accounts on January 1, 2017: Share Capital-Ordinary (£5 par) £400,000, Share Premium-Ordinary £200,000, and Retained Earnings £100,000. In 2017, the company had the following treasury share transactions. Mar. 1 Purchased 5,000 shares at £9 per share. June 1 Sold 500 shares at £12 per share. Sold 2,500 shares at £10 per share. Dec. 1 Sold 1,000 shares at £6 per share. Elston uses the cost method of accounting for treasury shares. In 2017, the company reported net income of £34,000. Instructions (a) Journalize the treasury share transactions, and prepare the closing entry at December 31, 2017, for net income. (b) Open accounts for (1) Share Premium-Treasury, (2) Treasury Shares, and (3) Retained Earnings. Post to these accounts using J10 as the posting reference. @) Prepare the equity section for Elston Limited at December 31, 2017.
