for problem 12.3 please explain how they got the 8000 shares issued , the 1,025,000 shares outstanding, and the 12000 remaining shares . thanks!

Elston uses the cost method of accounting for treasury shares. In 2020), the company reported net P12.5 (LO 3 lowing equit of 1,000 Instructions a. Journalize the treasury share transactions, and prepare the closing entry at December 31, 272, 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 Limited at December 31, 2020, b. Treasury Shares 9,000 Total equity 726.000 A review 1. N Journalism and post transactions prepare quity section 400 1.000,00 100.000 1.450.50 1.816,000 3. 4. 5. P12.3 (LO 2, 4) The equity accounts of Terrell SE on January 1, 2020, were as follows. 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 - 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. Hanwald gt go one dollon? 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. 50.000 6 No dividends were declared during the year. Instructions a. Journalize the transactions and the closing entry for net income. b. Lainning balances in the accounts, and post the journal entries to the equit Use JS for the posung e. Prepare an equity section at December 31, 2020, including the disclosure of the preference divi- dends in arrears. c. Total equity 5,356,000 Prepare dividend entries and equity Section P12.4 (LO 3, vin January 1, 2020, Prasad SpA had the following og ly accounts. Share Capital - Ordinary (25 par value. 48,000 shares issued and outstanding) 1.200.000 ces Mailings Review View Help Tell me what you want to do contain viruses. Unless you need to edit, it's safer to stay in Protected View. Enable Editing PROBLEM 12.3 (Continued). (C) TERRELL SE Statement of Financial Position (Partial) December 31, 2020 400,000 Equity Share capitalpreference, 9% 50 par value, cumulative, 10,000 shares authorized, 8,000 shares issued and outstanding Share capital-ordinary, no par, 1 stated value, 2,000,000 shares authorized, 1,037,000 shares issued and 1,025,000 shares outstanding..... Share premium-preference Share premium-ordinary Share premium-treasury Retained earnings (see Note X) Less: Treasury shares (12,000 shares) Total equity X 1,037,000 100,000 1,565,000 19,500 2,268,000 33,500 5,356.000 Note X: Dividends on preference shares totaling 36,000 [8,000 X (9% X 50)] are in arrears. o w 24"C F6 F7 F8 F9 F10 F11 F12 Home End Pm Sam Insert Pause Delete SUR