Problem 11-2A (Part Level Submission) Fechter Corporation had the following stoc
ID: 2465250 • Letter: P
Question
Problem 11-2A (Part Level Submission) Fechter Corporation had the following stockholders’ equity accounts on January 1, 2015: Common Stock ($5 par) $501,950, Paid-in Capital in Excess of Par—Common Stock $176,030, and Retained Earnings $116,910. In 2015, the company had the following treasury stock transactions.
Fechter Corporation uses the cost method of accounting for treasury stock. In 2015, the company reported net income of $32,320.
(a)
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
(b)
Open accounts for Paid-in Capital from Treasury Stock, Treasury Stock, and Retained Earnings. Post to these accounts using J10 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
J10
Retained Earnings
Date
Explanation
Ref
Debit
Credit
Balance
Balance
J10
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PLEASE HELP WITH PART B, I ALREADY DID PART A
Mar. 1 Purchased 6,810 shares at $8 per share. June 1 Sold 1,390 shares at $12 per share. Sept. 1 Sold 1,170 shares at $10 per share. Dec. 1 Sold 1,120 shares at $7 per share.Explanation / Answer
B.
Paid In Capital from Treasury Stock:
Treasury Stock
Retained Earnings
Date Explanation Ref Dr Cr Balance June 1 Reissue of Treasury Stock above cost J10 5,560 5,560 Sep 1 Reissue of Treasury Stock above cost J10 2,340 7,900 Dec 1 Reissue of Treasury stock below cost J10 1,120 6,780 Dec31 Balance at the end J10 6,780(Cr.)