Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please answer this Problem 11-2A Fechter Corporation had the following stockholders' equity accounts on January 1, 2015: Common Stock ($4 par) $411,760, Paid-in Capital in

image text in transcribed

Please answer this

image text in transcribedimage text in transcribed
Problem 11-2A Fechter Corporation had the following stockholders' equity accounts on January 1, 2015: Common Stock ($4 par) $411,760, Paid-in Capital in Excess of Par-Common Stock $176,420, and Retained Earnings $103,400. In 2015, the company had the following treasury stock transactions. Mar. 1 Purchased 5,580 shares at $8 per share. June 1 Sold 1,320 shares at $12 per share. Sept.1 Sold 1,270 shares at $10 per share Dec. 1 Sold 1,330 shares at $6 per share. Fechter Corporation uses the cost method of accounting for treasury stock. In 2015, the company reported net income of $29,020. Journalize 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 0 for the amounts.) Date Account Titles and Explanation Debit Credit Mar. 1 June 1 Sept. 1 Dec. 1 Dec. 31 SHOW LIST OF ACCOUNTS Open accounts for Paid-in Capital from Treasury Stock, Treasury Stock, and Retained Earnings. Post to these accounts using 310 as the posting reference. (Post entries in the order of journal entries presented in the previous part.) Paid-in Capital from Treasury Stock Date Explanation Ref Debit Credit Balance J10 J10 J10 Treasury Stock Date Explanation Ref Debit Credit Balance J10 J10 J10 310 Retained Earnings Date Explanation Ref Debit Credit Balance Balance V J10Prepare the stockholders' equity section for Fechter Corporation at December 31, 2015. (Enter the account name only and do not provide the descriptive information provided in the question.) FECHTER CORPORATION Balance Sheet (Partial) December 31, 2015 SHOW LIST OF ACCOUNTS

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Fundamental Managerial Accounting Concepts

Authors: Edmonds, Tsay, olds

6th Edition

71220720, 78110890, 9780071220729, 978-0078110894

More Books

Students also viewed these Accounting questions

Question

6. How can a message directly influence the interpreter?

Answered: 1 week ago