Just Required 3
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Just Required 3
Transcribed Image Text:Kohler Corporation reports the following components of stockholders' equity at December 31 of the prior year.
Common stock-$10 par value, 100,000 shares authorized, 40,000 shares issued and outstanding
Paid-in capital in excess of par value, common stock
Retained earnings
Total stockholders' equity
During the current year, the following transactions affected its stockholders' equity accounts.
January 2 Purchased 4,000 shares of its own stock at $20 cash per share.
January 5
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.
February 28
Sold 2,000 of its treasury shares at $24 cash per share.
Sold 2,000 of its treasury shares at $16 cash per share.
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.
July 6
August 22
September 5
October 28
December 31 Closed the $388,000 credit balance (from net income) in the Income Summary account to Retained Earnings.
Required:
1. Prepare journal entries to record each of these transactions.
2. Prepare a statement of retained earnings for the current year ended December 31.
3. Prepare the stockholders' equity section of the balance sheet as of December 31 of the current year.
Complete this question by entering your answers in the tabs below.
$ 400,000
60,000
270,000
$ 730,000
Required 1 Required 2
Required 3
Prepare journal entries to record each of these transactions.
Transcribed Image Text:September 5 Directors declared a $2 per share cash dividend payable on October 28 to the September 25 sto
October 28 Paid the dividend declared on September 5.
December 31 Closed the $388,000 credit balance (from net income) in the Income Summary account to Retaine
Required:
1. Prepare journal entries to record each of these transactions.
2. Prepare a statement of retained earnings for the current year ended December 31.
3. Prepare the stockholders' equity section of the balance sheet as of December 31 of the current year.
Complete this question by entering your answers in the tabs below.
Required 1 Required 2
Prepare the stockholders' equity section of the balance sheet as of December 31 of the current year.
Required 3
KOHLER CORPORATION
Stockholders' Equity Section of the Balance Sheet
December 31
Total contributed capital
Total stockholders' equity
< Required 2
Required 3 >
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