Elston Corporation had the following equity accounts on January 1, 2014: Share Capital—Ordinary ($5 par) $400,000, Share Premium—Ordinary $200,000, and Retained Earnings $100,000. In 2014, 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.
Sept. 1 Sold 2,500 shares at $10 per share.
Dec. 1 Sold 1,000 shares at $6 per share.
Elston Corporation uses the cost method of accounting for treasury shares. In 2014, the company reported net income of $34,000.

Instructions
(a) Journalize the treasury share transactions, and prepare the closing entry at December 31, 2014, 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.
(c) Prepare the equity section for Elston Corporation at December 31, 2014.