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Fechter Corporation had the following stockholders equity accounts on January 1, 2015: Common Stock ($4 par) $402,040, Paid-in Capital in Excess of ParCommon Stock $223,060,
Fechter Corporation had the following stockholders equity accounts on January 1, 2015: Common Stock ($4 par) $402,040, Paid-in Capital in Excess of ParCommon Stock $223,060, and Retained Earnings $106,150. In 2015, the company had the following treasury stock transactions.
Mar. | 1 | Purchased 5,530 shares at $8 per share. | |
June | 1 | Sold 1,050 shares at $12 per share. | |
Sept. | 1 | Sold 1,550 shares at $10 per share. | |
Dec. | 1 | Sold 1,300 shares at $7 per share. |
Fechter Corporation uses the cost method of accounting for treasury stock. In 2015, the company reported net income of $33,720.
ournalize the treasury stock transactions, and prepare the closing entry at December 31, 2015, for net income. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation Debit Credit Mar. 1| June 1 Sept. 1 Dec. 1 Dec. 31Step by Step Solution
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