Kohler Corporation reports the following components of stockholders’ equity at December 31, 2018. Common stock—$25 par value, 100,000 shares authorized, 45,000 shares issued and outstanding $ 1,125,000 Paid-in capital in excess of par value, common stock 60,000 Retained earnings 400,000 Total stockholders' equity $ 1,585,000 During 2019, the following transactions affected its stockholders’ equity accounts. Jan. 2 Purchased 4,500 shares of its own stock at $15 cash per share. Jan. 5 Directors declared a $6 per share cash dividend payable on February 28 to the February 5 stockholders of record. Feb. 28 Paid the dividend declared on January 5. July 6 Sold 1,688 of its treasury shares at $19 cash per share. Aug. 22 Sold 2,812 of its treasury shares at $12 cash per share. Sept. 5 Directors declared a $6 per share cash dividend payable on October 28 to the September 25 stockholders of record. Oct. 28 Paid the dividend declared on September 5. Dec. 31 Closed the $368,000 credit balance (from net income) in the Income Summary account to Retained Earnings. Required: 1. Prepare journal entries to record each of these transactions. Complete this question by entering your answers in the tabs below. Required 1-1 Prepare journal entries to record each of these transactions. Journal entry worksheet Record the purchase of 4,500 shares of its own common stock for $15 cash per share. Note: Enter debits before credits. Date General Journal Debit Credit Jan 02 Journal entry worksheet 1-2 Record the declaration of a cash dividend of $6 per share. Note: Enter debits before credits. Date General Journal Debit Credit Jan 05 Journal entry worksheet1-3 Record the payment of the cash dividend. Note: Enter debits before credits. Date General Journal Debit Credit Feb 28 Journal entry worksheet Record the reissue of 1,688 shares of the treasury stock for $19 cash per share. Note: Enter debits before credits. Date General Journal Debit Credit Jul 06 Journal entry worksheet1-4 Record the reissue of 2,812 shares of the treasury stock for $12 cash per share. Note: Enter debits before credits. Date General Journal Debit Credit Aug 22 Journal entry worksheet1-5 Record the declaration of a cash dividend of $6 per share. Note: Enter debits before credits. Date General Journal Debit Credit Sep 05 Journal entry worksheet 1-6 Record the payment of the cash dividend. Note: Enter debits before credits. Date General Journal Debit Credit Oct 28 Journal entry worksheet1-7 Record the entry to close the $368,000 credit balance (from net income) in the Income Summary account to Retained Earnings. Note: Enter debits before credits. Date General Journal Debit Credit Dec 31

Kohler Corporation reports the following components of stockholders’ equity at December 31, 2018. Common stock—$25 par value, 100,000 shares authorized, 45,000 shares issued and outstanding $ 1,125,000 Paid-in capital in excess of par value, common stock 60,000 Retained earnings 400,000 Total stockholders' equity $ 1,585,000 During 2019, the following transactions affected its stockholders’ equity accounts. Jan. 2 Purchased 4,500 shares of its own stock at $15 cash per share. Jan. 5 Directors declared a $6 per share cash dividend payable on February 28 to the February 5 stockholders of record. Feb. 28 Paid the dividend declared on January 5. July 6 Sold 1,688 of its treasury shares at $19 cash per share. Aug. 22 Sold 2,812 of its treasury shares at $12 cash per share. Sept. 5 Directors declared a $6 per share cash dividend payable on October 28 to the September 25 stockholders of record. Oct. 28 Paid the dividend declared on September 5. Dec. 31 Closed the $368,000 credit balance (from net income) in the Income Summary account to Retained Earnings. Required: 1. Prepare journal entries to record each of these transactions. Complete this question by entering your answers in the tabs below. Required 1-1 Prepare journal entries to record each of these transactions. Journal entry worksheet Record the purchase of 4,500 shares of its own common stock for $15 cash per share. Note: Enter debits before credits. Date General Journal Debit Credit Jan 02 Journal entry worksheet 1-2 Record the declaration of a cash dividend of $6 per share. Note: Enter debits before credits. Date General Journal Debit Credit Jan 05 Journal entry worksheet1-3 Record the payment of the cash dividend. Note: Enter debits before credits. Date General Journal Debit Credit Feb 28 Journal entry worksheet Record the reissue of 1,688 shares of the treasury stock for $19 cash per share. Note: Enter debits before credits. Date General Journal Debit Credit Jul 06 Journal entry worksheet1-4 Record the reissue of 2,812 shares of the treasury stock for $12 cash per share. Note: Enter debits before credits. Date General Journal Debit Credit Aug 22 Journal entry worksheet1-5 Record the declaration of a cash dividend of $6 per share. Note: Enter debits before credits. Date General Journal Debit Credit Sep 05 Journal entry worksheet 1-6 Record the payment of the cash dividend. Note: Enter debits before credits. Date General Journal Debit Credit Oct 28 Journal entry worksheet1-7 Record the entry to close the $368,000 credit balance (from net income) in the Income Summary account to Retained Earnings. Note: Enter debits before credits. Date General Journal Debit Credit Dec 31

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—$25 par value, 100,000 shares authorized, 45,000 shares issued and outstanding	$	1,125,000
Paid-in capital in excess of par value, common stock		60,000
Retained earnings		400,000
Total stockholders' equity	$	1,585,000

During 2019, the following transactions affected its stockholders’ equity accounts.

Jan.	2	Purchased 4,500 shares of its own stock at $15 cash per share.
Jan.	5	Directors declared a $6 per share cash dividend payable on February 28 to the February 5 stockholders of record.
Feb.	28	Paid the dividend declared on January 5.
July	6	Sold 1,688 of its treasury shares at $19 cash per share.
Aug.	22	Sold 2,812 of its treasury shares at $12 cash per share.
Sept.	5	Directors declared a $6 per share cash dividend payable on October 28 to the September 25 stockholders of record.
Oct.	28	Paid the dividend declared on September 5.
Dec.	31	Closed the $368,000 credit balance (from net income) in the Income Summary account to Retained Earnings.

Required:
1. Prepare journal entries to record each of these transactions.

Complete this question by entering your answers in the tabs below.

Required 1-1

Prepare journal entries to record each of these transactions.

Journal entry worksheet

Record the purchase of 4,500 shares of its own common stock for $15 cash per share.