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Destiny-19 Corporation had the following stockholders' equity accounts on January 1, 2022: Common Stock ($4 par) $400,000, Paid-in Capital in Excess of Par-Common Stock $210,000, and Retained Earnings $110,000. In 2022, the company had the following treasury stock transactions. Mar.1Purchased 7,000 shares at $9 per share. June1Sold 1,500 shares at $13 per share. Sept.15old 1,500 shares at $11 per share. Dec.1Sold 1,500 shares at $6 per share. Destiny-19 Corporation uses the cost method of accounting for treasury stock. In 2022, the company reported net income of $28,000. Date Account Title Debit Credit 1-Mar Treasury Stock ($7000*9) 63000 Cash 63000 1-Jun Cash 19500 Paid-In Capital Treasury Stock 6000 Treasury Stock (1500*13) 13500 1-Sep Cash (1,500*11) 16500 Paid-In Capital Treasury Stock 3000 Treasury Stock (1500*9) 13500 1-Dec Cash (1500*6) 9000 Paid-In Capital Treasury Stock 4500 Treasury Stock (1500*9) 13500 31-Dec Income Summary 28000 Retained Earnings 28000

Destiny-19 Corporation had the following stockholders' equity accounts on January 1, 2022: Common Stock ($4 par) $400,000, Paid-in Capital in Excess of Par-Common Stock $210,000, and Retained Earnings $110,000. In 2022, the company had the following treasury stock transactions. Mar.1Purchased 7,000 shares at $9 per share. June1Sold 1,500 shares at $13 per share. Sept.15old 1,500 shares at $11 per share. Dec.1Sold 1,500 shares at $6 per share. Destiny-19 Corporation uses the cost method of accounting for treasury stock. In 2022, the company reported net income of $28,000. Date Account Title Debit Credit 1-Mar Treasury Stock ($7000*9) 63000 Cash 63000 1-Jun Cash 19500 Paid-In Capital Treasury Stock 6000 Treasury Stock (1500*13) 13500 1-Sep Cash (1,500*11) 16500 Paid-In Capital Treasury Stock 3000 Treasury Stock (1500*9) 13500 1-Dec Cash (1500*6) 9000 Paid-In Capital Treasury Stock 4500 Treasury Stock (1500*9) 13500 31-Dec Income Summary 28000 Retained Earnings 28000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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I thought I posted this question earlier but think I might have failed to select a subject.  I need some help with retained earnings.  I re-read the section and found no help.  I need help with Open accounts and retained eaarnings.

Destiny-19 Corporation had the following stockholders' equity accounts on January 1, 2022: Common Stock ($4 par) $400,000, Paid-in Capital in Excess of Par-Common Stock $210,000, and Retained Earnings $110,000. In 2022, the company had the following treasury stock transactions. Mar.1Purchased 7,000 shares at $9 per share. June15old 1,500 shares at $13 per share. Sept.1Sold 1,500 shares at $11 per share. Dec.1Sold 1,500 shares at $6 per share. Destiny-19 Corporation uses the cost method of accounting for treasury stock. In 2022, the company reported net income of $28,000. Date Account Title Debit Credit 1-Mar Treasury Stock ($7000*9) 63000 Cash 63000 1-Jun Cash 19500 Paid-In Capital Treasury Stock 6000 Treasury Stock (1500*13) 13500 1-Sep Cash (1,500*11) 16500 Paid-In Capital Treasury Stock 3000 Treasury Stock (1500*9) 13500 1-Dec Cash (1500*6) 9000 Paid-In Capital Treasury Stock 4500 Treasury Stock (1500*9) 13500 31-Dec Income Summary 28000 Retained Earnings 28000
Transcribed Image Text:Destiny-19 Corporation had the following stockholders' equity accounts on January 1, 2022: Common Stock ($4 par) $400,000, Paid-in Capital in Excess of Par-Common Stock $210,000, and Retained Earnings $110,000. In 2022, the company had the following treasury stock transactions. Mar.1Purchased 7,000 shares at $9 per share. June15old 1,500 shares at $13 per share. Sept.1Sold 1,500 shares at $11 per share. Dec.1Sold 1,500 shares at $6 per share. Destiny-19 Corporation uses the cost method of accounting for treasury stock. In 2022, the company reported net income of $28,000. Date Account Title Debit Credit 1-Mar Treasury Stock ($7000*9) 63000 Cash 63000 1-Jun Cash 19500 Paid-In Capital Treasury Stock 6000 Treasury Stock (1500*13) 13500 1-Sep Cash (1,500*11) 16500 Paid-In Capital Treasury Stock 3000 Treasury Stock (1500*9) 13500 1-Dec Cash (1500*6) 9000 Paid-In Capital Treasury Stock 4500 Treasury Stock (1500*9) 13500 31-Dec Income Summary 28000 Retained Earnings 28000
Paid-In Capital from Treasury Stock 1-Dec 4500 1-Jun 6000 1-Sep 3000 Bal 4500 Treasury Stock 1-Mar 63000 1-Jun 13500 1-Sep 13500 1-Dec 13500 Bal 22500 Retained Earnings
Transcribed Image Text:Paid-In Capital from Treasury Stock 1-Dec 4500 1-Jun 6000 1-Sep 3000 Bal 4500 Treasury Stock 1-Mar 63000 1-Jun 13500 1-Sep 13500 1-Dec 13500 Bal 22500 Retained Earnings
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