Problem 11-2A Fechter Corporation had the following stockholders’ equity accounts on January
1, 2017: Common Stock ($5 par) $536,800, Paid-in Capital in Excess of Par—Common Stock
$193,790, and Retained Earnings $100,450. In 2017, the company had the following treasury
stock transactions. Mar. 1 Purchased 5,700 shares at $9 per share. June 1 Sold 1,040 shares at
$13 per share. Sept. 1 Sold 1,980 shares at $10 per share. Dec. 1 Sold 1,310 shares at $7 per
share. Fechter Corporation uses the cost method of accounting for treasury stock. In 2017, the
company reported net income of $32,820
ournalize the treasury stock transactions, and prepare the closing entry at December 31, 2017, for
net income. (Record journal entries in the order presented in the problem. 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
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
Date
Account Titles and Explanation
Debit
Credit Jan. 1Mar. 1June 1Sept. 1Dec. 1Dec. 31
Jan. 1Mar. 1June 1Sept. 1Dec. 1Dec. 31
Jan. 1Mar. 1June 1Sept. 1Dec. 1Dec. 31
Dec. 1
Jan. 1Mar. 1June 1Sept. 1Dec. 1Dec. 31
SHOW LIST OF ACCOUNTS
Solution
Journal Entries:
Date
Account Titles and Explanation
Debit
Credit
Mar. 1
Treasury Stock (5700*$9)
$ 51,300.00
Cash
$ 51,300.00
(Being shares repurchased )
June. 1
Cash (1040*$13)
$ 13,520.00
Paid-in Capital from Treasury Stock = 13520 - 9360
$ 4,160.00
Treasury Stock (1040*$9)
$ 9,360.00
(Being treasury shares reissued)
Sept. 1
Cash (1980*$10)
$ 19,800.00
Paid-in Capital from Treasury Stock = 19800-17820
$ 1,980.00
Treasury Stock (1980*$9)
$ 17,820.00
(Being treasury shares reissued)
Dec. 1
Cash (1310*$7)
$ 9,170.00
Paid-in Capital from Treasury Stock = 11790-9170
$ 2,620.00
Treasury Stock (1310*$9)
$ 11,790.00
(Being treasury shares reissued)
Dec. 31
Income Summary
$ 32,820.00
Retained Earnings
$ 32,820.00
(Being bet inc0me closed)
Paid-in Capital from Treasury Stock
Date
Explanation
Ref.
Debit
Credit
Balance
June. 1
J10
$ 4,160.00
$ 4,160.00
Sept. 1
J10
$ 1,980.00
$ 6,140.00
Dec. 1
J10
$ 2,620.00
$ 3,520.00
Treasury Stock
Date
Explanation
Ref.
Debit
Credit
Balance
Mar. 1
J10
$ 51,300.00
$ 51,300.00
June. 1
J10
$ 9,360.00
$ 41,940.00
Sept. 1
J10
$ 17,820.00
$ 24,120.00
Dec. 1
J10
$ 11,790.00
$ 12,330.00
Retained Earnings
Date
Explanation
Ref.
Debit
Credit
Balance
Balance
$ 100,450.00
$ 100,450.00
Dec. 31
J10
$ 32,820.00
$ 133,270.00
FECHTER CORPORATION
Balance Sheet (Partial)
For the Year Ended December 31, 2017
Common Stock ($5 par)
$ 536,800.00
Paid-in Capital in Excess of Par—Common Stock
$ 193,790.00
Retained Earnings
$ 133,270.0.
Problem 11-2A Fechter Corporation had the following stockholders’ eq.pdf
1. Problem 11-2A Fechter Corporation had the following stockholders’ equity accounts on January
1, 2017: Common Stock ($5 par) $536,800, Paid-in Capital in Excess of Par—Common Stock
$193,790, and Retained Earnings $100,450. In 2017, the company had the following treasury
stock transactions. Mar. 1 Purchased 5,700 shares at $9 per share. June 1 Sold 1,040 shares at
$13 per share. Sept. 1 Sold 1,980 shares at $10 per share. Dec. 1 Sold 1,310 shares at $7 per
share. Fechter Corporation uses the cost method of accounting for treasury stock. In 2017, the
company reported net income of $32,820
ournalize the treasury stock transactions, and prepare the closing entry at December 31, 2017, for
net income. (Record journal entries in the order presented in the problem. 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
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