p13-2a

stockholders' equity accounts on January 1, Journalize and post treasury P13-2A Fechter Corporation had the following 2017: Common Stock (S5 par) $500,000, $200,000, and Retained Earnings $100,000. sury stock transactions. Paid-in Capital in Excess of Par -Common Stock In 2017, the company had the following trea- i the c stock transactions, and prepare stockholders' equiry section. Mar 1 Purchased 5,000 shares at $8 per share. June 1 Sold 1,000 shares at $12 per share. Sept. 1 Sold 2,000 shares at $10 per share. Dec. 1 Sold 1,000 shares at $7 per share. (LO 3, 4) Fechter Corporation uses the cost method of accounting for treasury stock. In 2017, the company reported net income of $30,000. Instructions (a) Journalize the treasury stock transactions, and prepare the closing entry at December 31, 2017, for net income. 28