Elston Limited had the following equity accounts on January 1, 2020: Share Capital—Ordinary ($5 par) $400,000, Share Premium—Ordinary $200,000, and Retained Earnings $100,000. In 2020, 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 uses the cost method of accounting for treasury shares. In 2020, the company reported net income of $34,000. Instructions: a. Journalize the treasury share transactions, and prepare the closing entry at December 31, 2020, for net income. b. Post the journal related to these accounts: (1) Share Premium—Treasury, (2) Treasury Shares, and (3) Retained Earnings. Ese a formal form of General Ledger. c. Prepare the equity section for Elston Limited at December 31, 2020.

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Consolidation

Consolidation in general examination implies an asset oscillating between well-defined methods of trading status. Consolidation is commonly known as market indecisiveness, which completes when the asset's values move forward or backward the trading structure.