Homework Help is Here – Start Your Trial Now!
Business
Accounting
Jan Jan 2 Purchased 4,000 shares of its own stock at $20 cash per share. Directors declared a $2 per share cash dividend payable on February 28 to the February 5 stockholders of record Paid the dividend declared on January 5 Sold 1,500 of its treasury shares at $24 cash per share Sold 2,500 of its treasury shares at $17 cash per share 5 Feb. 28 July 6 Aug. 22 Sep. 5 Directors declared a $2 per share cash dividend payable on October 28 to the September 25 stockholders of record Paid the dividend declared on September 5 Closed the $388,000 credit balance (from net income) in the Income Summary account to Re- tained Earnings. Oct. 28 Dec. 31 Required 1. Prepare journal entries to record each of these transactions 2. Prepare a statement of retained earnings for the year ended December 31, 2019 Check (2) Ending retained earnings, $504,500 3. Prepare the stockholders' equity section of the company's balance sheet as of December 31, 2019. Page 493

Jan Jan 2 Purchased 4,000 shares of its own stock at $20 cash per share. Directors declared a $2 per share cash dividend payable on February 28 to the February 5 stockholders of record Paid the dividend declared on January 5 Sold 1,500 of its treasury shares at $24 cash per share Sold 2,500 of its treasury shares at $17 cash per share 5 Feb. 28 July 6 Aug. 22 Sep. 5 Directors declared a $2 per share cash dividend payable on October 28 to the September 25 stockholders of record Paid the dividend declared on September 5 Closed the $388,000 credit balance (from net income) in the Income Summary account to Re- tained Earnings. Oct. 28 Dec. 31 Required 1. Prepare journal entries to record each of these transactions 2. Prepare a statement of retained earnings for the year ended December 31, 2019 Check (2) Ending retained earnings, $504,500 3. Prepare the stockholders' equity section of the company's balance sheet as of December 31, 2019. Page 493

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question

Kohler Corporation reports the following components of stockholders' equity at December 31,2018.

Common Stock- $10 par value, 100,000 shares authorized, 40,000 shares issued and outstanding $400,000

Paid-in capital in excess of par value, common stock 60,000

Retained Earnings 270,000

Total Stockholders' Equity $730,000

 

During 2019, the Following transactions affected its stockholders equity accounts.

 

 

Jan Jan 2 Purchased 4,000 shares of its own stock at $20 cash per share. Directors declared a $2 per share cash dividend payable on February 28 to the February 5 stockholders of record Paid the dividend declared on January 5 Sold 1,500 of its treasury shares at $24 cash per share Sold 2,500 of its treasury shares at $17 cash per share 5 Feb. 28 July 6 Aug. 22 Sep. 5 Directors declared a $2 per share cash dividend payable on October 28 to the September 25 stockholders of record Paid the dividend declared on September 5 Closed the $388,000 credit balance (from net income) in the Income Summary account to Re- tained Earnings. Oct. 28 Dec. 31 Required 1. Prepare journal entries to record each of these transactions 2. Prepare a statement of retained earnings for the year ended December 31, 2019 Check (2) Ending retained earnings, $504,500 3. Prepare the stockholders' equity section of the company's balance sheet as of December 31, 2019. Page 493
Transcribed Image Text:Jan Jan 2 Purchased 4,000 shares of its own stock at $20 cash per share. Directors declared a $2 per share cash dividend payable on February 28 to the February 5 stockholders of record Paid the dividend declared on January 5 Sold 1,500 of its treasury shares at $24 cash per share Sold 2,500 of its treasury shares at $17 cash per share 5 Feb. 28 July 6 Aug. 22 Sep. 5 Directors declared a $2 per share cash dividend payable on October 28 to the September 25 stockholders of record Paid the dividend declared on September 5 Closed the $388,000 credit balance (from net income) in the Income Summary account to Re- tained Earnings. Oct. 28 Dec. 31 Required 1. Prepare journal entries to record each of these transactions 2. Prepare a statement of retained earnings for the year ended December 31, 2019 Check (2) Ending retained earnings, $504,500 3. Prepare the stockholders' equity section of the company's balance sheet as of December 31, 2019. Page 493
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 4 steps with 4 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Consolidations
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS