Kohler Corporation reports the following components of stockholders' equity at December 31, 2018. Common stock-$15 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 Jan. Jan. During 2019, the following transactions affected its stockholders' equity accounts. 2 Purchased 4,000 shares of its own stock at $25 cash per share. Directors declared a $4 per share cash dividend payable on February 28 to the February 5 stockholders of record. Paid the dividend declared on January 5. Feb. July Aug. Sept. Oct. Dec. 5 28 6 $ 600,000 22 80,000 Sold 1,500 of its treasury shares at $29 cash per share. Sold 2,500 of its treasury shares at $22 cash per share. Directors declared a $4 per share cash dividend payable on October 28 to the September 25 stockholders of record. 28 Paid the dividend declared on September 5. 31 Closed the $368,000 credit balance (from net income) in the Income Summary account to Retained Earnings. 5 400,000 $ 1,080,000 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. 3. Prepare the stockholders' equity section of the company's balance sheet as of December 31, 2019.
Kohler Corporation reports the following components of stockholders' equity at December 31, 2018. Common stock-$15 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 Jan. Jan. During 2019, the following transactions affected its stockholders' equity accounts. 2 Purchased 4,000 shares of its own stock at $25 cash per share. Directors declared a $4 per share cash dividend payable on February 28 to the February 5 stockholders of record. Paid the dividend declared on January 5. Feb. July Aug. Sept. Oct. Dec. 5 28 6 $ 600,000 22 80,000 Sold 1,500 of its treasury shares at $29 cash per share. Sold 2,500 of its treasury shares at $22 cash per share. Directors declared a $4 per share cash dividend payable on October 28 to the September 25 stockholders of record. 28 Paid the dividend declared on September 5. 31 Closed the $368,000 credit balance (from net income) in the Income Summary account to Retained Earnings. 5 400,000 $ 1,080,000 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. 3. Prepare the stockholders' equity section of the company's balance sheet as of December 31, 2019.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Kohler Corporation reports the following components of stockholders' equity at December 31, 2018.
Common stock-$15 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
Jan.
Jan.
Feb.
During 2019, the following transactions affected its stockholders' equity accounts.
2 Purchased 4,000 shares of its own stock at $25 cash per share.
Directors declared a $4 per share cash dividend payable on February 28 to the February 5 stockholders of record.
Paid the dividend declared on January 5.
5
Dec.
28
July 6
Aug.
Sept. 5
Oct.
$ 600,000
22
80,000
28
400,000
Sold 1,500 of its treasury shares at $29 cash per share.
Sold 2,500 of its treasury shares at $22 cash per share.
Directors declared a $4 per share cash dividend payable on October 28 to the September 25 stockholders of record.
Paid the dividend declared on September 5.
31 Closed the $368,000 credit balance (from net income) in the Income Summary account to Retained Earnings.
$ 1,080,000
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.
3. Prepare the stockholders' equity section of the company's balance sheet as of December 31, 2019.
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