Fechter Corporation had the following shareholders' equity accounts as of January 1, 2017: common stock ($5 par)
Question:
Fechter Corporation had the following shareholders' equity accounts as of January 1, 2017: common stock ($5 par) $500,000, paid-in capital in excess of par: common stock $200,000, and retained earnings $100,000. In 2017, the company has carried out the following treasury stock operations.
Mar. | 1 | He bought 5,000 shares at $8 per share. | |
June | 1 | He sold 1,000 shares for $12 per share. | |
September | 1 | He sold 2,000 shares at $10 per share. | |
Dic. | 1 | He sold 1,000 shares at $7 per share. |
Fechter Corporation uses the cost method to account for treasury stock. In 2017, the company reported a net profit of $30,000.
Record treasury stock transactions in the journal and prepare the closing entry as of December 31, 2017 for net income. (Record the journal entries in the order presented in the problem. Credit account titles are automatically indented when the amount is entered. Do not manually indent.)
Advanced Accounting
ISBN: 978-1305084858
12th edition
Authors: Paul M. Fischer, William J. Tayler, Rita H. Cheng