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After Jesus ascended into heaven, the disciples returned to Jerusalem and gathered together with the other Christ followers. Acts says there were about 120 people there, including the disciples, women who followed Jesus, Mary the mother of Jesus, and Jesus’ brothers. This is important because it shows that Jesus’ ministry impacted far more people than just the 12 disciples we usually think about.
Peter then stood up and explained that Judas' betrayal and death fulfilled scripture and because Judas was no longer among them they needed another apostle to take his place. The group chose two men who had both followed Jesus throughout His ministry and had witnessed His resurrection, Joseph and Matthias. After praying and asking for God’s guidance, they cast lots (basically flipped a coin or rolled dice), and Matthias was chosen to become the 12th apostle.
This passage reminds us that there were many faithful followers of Jesus from the very beginning, and because there were so many people who had truly walked with Jesus and witnessed His ministry, the believers were able to appoint another apostle to replace Judas.