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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
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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
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