FULL SCREEN NEXT Question 1 Fechter Corporation had the following stockholders\'
ID: 2556890 • Letter: F
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FULL SCREEN NEXT Question 1 Fechter Corporation had the following stockholders' equity accounts on January 1 Par-Common Stock $187,420, and Retained Earnings $117,300. In 2017, the company had the following treasury stock transactions. , 2017: Common Stock ($5 par) $533,500, Paid-In Capital in Excess of Mar. 1 Purchased 6,810 shares at $8 per share. June 1 Sold 1,410 shares at $12 per share. Sept.1 Sold 1,720 shares at $10 per share. Dec. 1 Sold 1,430 shares at $6 per share. Fechter Corporation uses thExplanation / Answer
Date
General journal
Debit
credit
(a)
Mar-01
Treasury stock ((6810*$8)
54480
cash
54480
Purchased 6810 shares at $8
Jun-01
Cash (1410*12)
16920
Treasury stock (1410*$8)
11280
Paid in capital from treasury
5640
1410 shares sold at $12
Sep-01
Cash (1720*$10)
17200
Treasury stock (1720*$8)
13760
Paid in capital from treasury stock
3440
sold 1720 shares at $10
Dec-01
Cash (1430*$6)
8580
Paid in capital from treasury stock(1430*2)
2860
Treasury stock
11440
sold 1430 shares at $6
Dec-31
Income summary
26540
Retained earnings
26540
Paid in capital
Date
Explanation
Ref
Debit
Credit
Balance
Jun-01
J10
5640
5640
Sep-01
J10
3440
9080
Dec-01
J10
2860
6220
Treasury stock
Date
Explanation
Ref
Debit
Credit
Balance
Mar-01
J10
54480
54480
Jun-01
J10
11280
43200
Sep-01
J10
13760
29440
Dec-01
J10
11440
18000
Retained earnings
Date
Explanation
Ref
Debit
Credit
Balance
Jan-01
J10
117300
Dec-31
J10
26540
143840
Stockholders' equity
$
$
Paid in capital
capital stock
Common stock $5 par
533500
Additional paid in capital
in excess of par value
187420
From treasury stock
6220
Total additional paid in capital
193640
Total paid in capital
727140
Retained earnings
143840
Total paid in capital and retained earnings
870980
Less: Treasury stock
-18000
Total stock holders' equity
852980
Date
General journal
Debit
credit
(a)
Mar-01
Treasury stock ((6810*$8)
54480
cash
54480
Purchased 6810 shares at $8
Jun-01
Cash (1410*12)
16920
Treasury stock (1410*$8)
11280
Paid in capital from treasury
5640
1410 shares sold at $12
Sep-01
Cash (1720*$10)
17200
Treasury stock (1720*$8)
13760
Paid in capital from treasury stock
3440
sold 1720 shares at $10
Dec-01
Cash (1430*$6)
8580
Paid in capital from treasury stock(1430*2)
2860
Treasury stock
11440
sold 1430 shares at $6
Dec-31
Income summary
26540
Retained earnings
26540
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