| Jounalizing a closing entry for treasury Stock
I am working with treasury stock in one of my assignments.
The beginning of the assignment:
Greeve Corporation has the following stockholders' equity accounts on Jan 1, 2006
Common Stock ($1 par) $400,000
Paid-in capital in Excess of Par Value $500,000
Retained Earnings $100,000
I needed to and did journalize the stock treasury transactions which were
Mar 1. Purchased 5,000 shares at $7 per share
June 1. Sold 1,000 shares at $10 per share (above cost)
Sept 1 Sold 2,000 shares at $9 per share (above cost)
Dec 1 Sold 1,000 shares at $5 per share (below cost)
I needed to use the cost method of accounting for treasury stock and in 2006, the company reported net income of $60,000
Now I need to prepare a closing entry at December 31, 2006 for net income. I am very lost. I have prepared closing entries before with revenue and expense, but not stocks. Please help. What do I need to include in this closing entry?
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