Question

Fechter Corporation had the following stockholders' equity accounts on January 1, 2015: Common Stock ($4 par) $421,200, Paid-in Capital in Excess of Par-Common Stock $177,810, and Retained Earnings $105,810. In 2015, the company had the following treasury stock transactions Mar. 1 Purchased 6,690 shares at $8 per share. June 1 Sold 1,240 shares at $12 per share. Sept.1 Sold 1,870 shares at $10 per share Dec. 1 Sold 1,060 shares at $6 per share Fechter Corporation uses the cost method of accounting for treasury stock. In 2015, the company reported net income of $33,680 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 נ10 110 J10 Treasury Stock Date Explanation Debit Credit Balance נ10 נ10 110 Retained Earnings Ref Debit Date 7 Balance נ10 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 Accounts Payable Accounts Receivable Accumulated Depreciation-Buildings Accumulated Depreciation-Equipment Allowance for Doubtful Accounts Bad Debts Expense Buildings Cash Cash Dividends Common Stock Common Stock Dividends Distributable Cost of Goods Sold Depreciation Expense Dividends Payable Equipment Income Summary Interest Expense Interest Payable Land No Entry Operating Expenses Organization Expense Other Operating Expenses Paid-in Capital from Treasury Stock Paid-in Capital in Excess of Par-Common Stock Paid-in Capital in Excess of Par-Preferred Stock Paid-in Capital in Excess of Stated Value-Common Stock Patents Preferred Stock Retained Earnings Salaries and Wages Expense Salaries and Wages Payable Sales Revenue Service Revenue Stock Dividends Supplies Supplies Expense Treasury Stock Unearned Service Revenue

Answer 1

Date	Account titles and Explanations				Debit	Credit
1-Mar	Treasury stock				53520
	cash					53,520
	(6690*8)
1-Jun	cash		(1240*12)		14880
	Treausry stock		(1240*8)			9920
	Paid in capital from-TS					4960
1-Sep	cash		(1870*10)		18700
	Treausry stock		(1870*8)			14960
	Paid in capital from -TS					3740
1-Dec	Cash		(1060*6)		6,360
	paid in capital from-TS				2,120
	Treasury stock					8,480

paid in capital from treasury stock
1-Dec	2,120	1-Jun	4,960
		1-Sep	3,740
		Bal	6,580
Treasury stock
1-Mar	53,520	1-Jun	9,920
		1-Sep	14,960
		1-Dec	8,480
Bal	20,160
Retained earnings
		1-Jan	105,810
		31-Dec	33,680
		balance	139,490

	Balance Sheet
	As on December 31,2017
Shareholders Equity
paid in capital
Capital Stock
Common shares					421,200
Addittional paid in capital
paid in capital in excess of par				177,810
paid in capital from treasury stock				6,580
total Addittional paid in capital					184,390
total paid in capital					605,590
Add retained earnings					139,490
total paid in capital & retained earnings					745,080
less Treasury stock					-20,160
stockholders Equity					724,920