FILL IN BALANCE SHEET

Pharoah Company had the following stockholders' equity accounts on January 1, 2022: Common Stock ($4 par) $400,000, Paid-in Capital in Excess of ParCommon Stock $185,000, and Retained Earnings $120,000. In 2022, the company had the following treasury stock transactions. Mar. 1 Purchased 6,000 shares at $9 per share. June 1 Sold 1,500 shares at $13 per share. Sept. 1 Sold 1,000 shares at $11 per share. Dec. 1 Sold 1,000 shares at $7 per share. Pharoah Company uses the cost method of accounting for treasury stock. In 2022, the company reported net income of $35,000. (a) V Your answer is correct. Journalize the treasury stock transactions, and prepare the closing entry at December 31, 2022, for net income. (Recordjournal entries in the order presented in the problem. 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 0 for the amounts.) Date Account Titles and Explanation Debit Credit Sept. 1 V Cash 11000 Treasury Stock 9000 Paid-in Capital from Treasury Stock 2000 Dec. 1 Cash 7000 Paid-in Capital from Treasury Stock 2000 Treasury Stock 9000 Dec. 31 V Income Summary 35000 Retained Earnings 35000Open accounts for (1) Paid-in Capital from Treasury Stock, (2) Treasury Stock, and (3) Retained Earnings. (Post to T-accounts.) (Post entries in the order of journal entries presented in the previous part.) Paid-in Capital from Treasury Stock Dec. 1 2000 June 1 6000 Sept. 1 2000 Dec. 31 6000 Treasury Stock Mar. 1 54000 June 1 V 13500 Sept. 1 V 9000 Dec. 1 V 9000 Dec. 31 V 22500 Retained Earnings Jan. 1 120000 Dec. 31 35000 Dec. 31 155000