Problem 11-2A Date Account Titles and Explanation Debit Credit Mar. 1 June 1 Sep
ID: 2484521 • Letter: P
Question
Problem 11-2A
Date
Account Titles and Explanation
Debit
Credit
Mar. 1
June 1
Sept. 1
Dec. 1
Dec. 31
SHOW LIST OF ACCOUNTS
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
SHOW LIST OF ACCOUNTS
FECHTER CORPORATION
Balance Sheet (Partial)
December 31, 2015
SHOW LIST OF ACCOUNTS
Problem 11-2A
Fechter Corporation had the following stockholders’ equity accounts on January 1, 2015: Common Stock ($4 par) $402,040, Paid-in Capital in Excess of Par—Common 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. 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 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
Jan. 1 Mar. 1 June 1 Sept. 1 Dec. 1 Dec. 31
J10
Jan. 1 Mar. 1 June 1 Sept. 1 Dec. 1 Dec. 31
J10
Jan. 1 Mar. 1 June 1 Sept. 1 Dec. 1 Dec. 31
J10
Treasury Stock
Date
Explanation
Ref
Debit
Credit
Balance
Jan. 1 Mar. 1 June 1 Sept. 1 Dec. 1 Dec. 31
J10
Jan. 1 Mar. 1 June 1 Sept. 1 Dec. 1 Dec. 31
J10
Jan. 1 Mar. 1 June 1 Sept. 1 Dec. 1 Dec. 31
J10
Jan. 1 Mar. 1 June 1 Sept. 1 Dec. 1 Dec. 31
J10
Retained Earnings
Date
Explanation
Ref
Debit
Credit
Balance
Jan. 1 Mar. 1 June 1 Sept. 1 Dec. 1 Dec. 31
Balance
?
Jan. 1 Mar. 1 June 1 Sept. 1 Dec. 1 Dec. 31
J10
SHOW LIST OF ACCOUNTS
Prepare 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
Additional Paid-in CapitalCapital StockCurrent AssetsCurrent LiabilitiesIntangible AssetsLong-term InvestmentsLong-term LiabilitiesPaid-in CapitalProperty, Plant and EquipmentStockholders' EquityTotal Additional Paid-in CapitalTotal AssetsTotal Capital StockTotal Current AssetsTotal Current LiabilitiesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Stockholders' EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Paid-in CapitalTotal Paid-in Capital and Retained EarningsTotal Property, Plant and EquipmentTotal Stockholders' Equity
Additional Paid-in CapitalCapital StockCurrent AssetsCurrent LiabilitiesIntangible AssetsLong-term InvestmentsLong-term LiabilitiesPaid-in CapitalProperty, Plant and EquipmentStockholders' EquityTotal Additional Paid-in CapitalTotal AssetsTotal Capital StockTotal Current AssetsTotal Current LiabilitiesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Stockholders' EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Paid-in CapitalTotal Paid-in Capital and Retained EarningsTotal Property, Plant and EquipmentTotal Stockholders' Equity
Additional Paid-in CapitalCapital StockCurrent AssetsCurrent LiabilitiesIntangible AssetsLong-term InvestmentsLong-term LiabilitiesPaid-in CapitalProperty, Plant and EquipmentStockholders' EquityTotal Additional Paid-in CapitalTotal AssetsTotal Capital StockTotal Current AssetsTotal Current LiabilitiesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Stockholders' EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Paid-in CapitalTotal Paid-in Capital and Retained EarningsTotal Property, Plant and EquipmentTotal Stockholders' Equity
$Additional Paid-in CapitalCapital StockCurrent AssetsCurrent LiabilitiesIntangible AssetsLong-term InvestmentsLong-term LiabilitiesPaid-in CapitalProperty, Plant and EquipmentStockholders' EquityTotal Additional Paid-in CapitalTotal AssetsTotal Capital StockTotal Current AssetsTotal Current LiabilitiesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Stockholders' EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Paid-in CapitalTotal Paid-in Capital and Retained EarningsTotal Property, Plant and EquipmentTotal Stockholders' Equity
$Additional Paid-in Capital Capital Stock Current Assets Current Liabilities Intangible Assets Long-term Investments Long-term Liabilities Paid-in Capital Property, Plant and Equipment Stockholders' Equity Total Additional Paid-in Capital Total Assets Total Capital Stock Total Current Assets Total Current Liabilities Total Intangible Assets Total Liabilities Total Liabilities and Stockholders' Equity Total Long-term Investments Total Long-term Liabilities Total Paid-in Capital Total Paid-in Capital and Retained Earnings Total Property, Plant and Equipment Total Stockholders' Equity
Additional Paid-in Capital Capital Stock Current Assets Current Liabilities Intangible Assets Long-term Investments Long-term Liabilities Paid-in Capital Property, Plant and Equipment Stockholders' Equity Total Additional Paid-in Capital Total Assets Total Capital Stock Total Current Assets Total Current Liabilities Total Intangible Assets Total Liabilities Total Liabilities and Stockholders' Equity Total Long-term Investments Total Long-term Liabilities Total Paid-in Capital Total Paid-in Capital and Retained Earnings Total Property, Plant and Equipment Total Stockholders' Equity
Additional Paid-in Capital Capital Stock Current Assets Current Liabilities Intangible Assets Long-term Investments Long-term Liabilities Paid-in Capital Property, Plant and Equipment Stockholders' Equity Total Additional Paid-in Capital Total Assets Total Capital Stock Total Current Assets Total Current Liabilities Total Intangible Assets Total Liabilities Total Liabilities and Stockholders' Equity Total Long-term Investments Total Long-term Liabilities Total Paid-in Capital Total Paid-in Capital and Retained Earnings Total Property, Plant and Equipment Total Stockholders' Equity
Add Less
:Additional Paid-in Capital Capital Stock Current Assets Current Liabilities Intangible Assets Long-term Investments Long-term Liabilities Paid-in Capital Property, Plant and Equipment Stockholders' Equity Total Additional Paid-in Capital Total Assets Total Capital Stock Total Current Assets Total Current Liabilities Total Intangible Assets Total Liabilities Total Liabilities and Stockholders' Equity Total Long-term Investments Total Long-term Liabilities Total Paid-in Capital Total Paid-in Capital and Retained Earnings Total Property, Plant and Equipment Total Stockholders' Equity
$SHOW LIST OF ACCOUNTS
Explanation / Answer
(a) Mar. 1 Treasury Stock (5,530 X $8)......................................... 44,240
Cash...................................................................... 44,240
June 1 Cash (1,050 X $12)......................................................... 12,600
Treasury Stock (1,050 X $8)............................... 8,400
Paid-in Capital from Treasury
Stock (1,050 X $4)............................................ 4,200
Sept. 1 Cash (1,550 X $10)......................................................... 15,550
Treasury Stock (1,550 X $8)............................... 12,400
Paid-in Capital from Treasury
Stock (1,550 X $2)............................................ 3,100
Dec. 1 Cash (1,300 X $7)........................................................... 9,100
Paid-in Capital from Treasury Stock(1,300*1)...................................... 1,300
Treasury Stock (1,300 X $8)............................... 10,400
31 Income Summary .................................................................... 33,720
Retained Earnings............................................... 33,720
(b)
Paid-in Capital from Treasury Stock
Date
Explanation
Ref.
Debit
Credit
Balance
June 1
Sept. 1
Dec. 1
J10
J10
J10
1,300
4,200
3,100
4,200
7,300
6,000
Treasury Stock
Date
Explanation
Ref.
Debit
Credit
Balance
Mar. 1
June 1
Sept. 1
Dec. 1
J10
J10
J10
J10
44,240
8,400
12,400
10,400
44,240
35,840
23,440
13,040
Retained Earnings
Date
Explanation
Ref.
Debit
Credit
Balance
Jan. 1
Dec. 31
Balance
J10
33,720
106,150
139,870
(c) FETCHER CORPORATION
Stockholders’ equity
Paid-in capital
Capital stock
Common stock, $4 par,
.................................. $402,040
Additional paid-in capital
In excess of par value.................................. $223,060
From treasury stock.................................... 6,000
Total additional paid-in
capital............................................. 229,060
Total paid-in capital.......................... 631,100
Retained earnings........................................................... 139,870
Total paid-in capital and
retained earnings........................... 770,970
Less: Treasury stock (1,000 common
shares, at cost).................................................. (13,040)
Total stockholders’
equity.............................................. $757,930
Date
Explanation
Ref.
Debit
Credit
Balance
June 1
Sept. 1
Dec. 1
J10
J10
J10
1,300
4,200
3,100
4,200
7,300
6,000