Business, 11.02.2022 09:50 justhereforanswers13

Fechter Corporation had the following stockholders’ equity accounts on January 1, 2020: Common Stock ($5 par) $500,000, Paid-in Capital in Excess of Par— Common Stock $200,000, and Retained Earnings $100,000. In 2020, the company had the following treasury stock transactions. Mar. 1 Purchased 5,000 shares at $8 per share. June 1 Sold 1,000 shares at $12 per share. Sept. 1 Sold 2,000 shares at $10 per share. Dec. 1 Sold 1,000 shares at $7 per share. Fechter Corporation uses the cost method of accounting for treasury stock. In 2020, the company reported net income of $30,000. Instructions a. Journalize the treasury stock transactions, and prepare the closing entry at December 31, 2020, for net income. B. Open accounts for (1) Paid-in Capital from Treasury Stock, (2) Treasury Stock, and (3) Retained Earnings. (Post to T-accounts. ) c. Prepare the stockholders’ equity section for Fechter Corporation at December 31, 2020.

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Fechter Corporation had the following stockholders’ equity accounts on January 1, 2020: Common Stock...

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