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, 50,000 shares issued and outstanding $ 500,000 Paid-in capital in excess of par value, common stock 80,000 Retained earnings 460,000 $ 1,040,000 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 $15 cash per share. January 5 February 28 July 6 August 22 Directors declared a $4 per share cash dividend payable on February 28 to the February 5 stockholders of record. September 5 Paid the dividend declared on January 5. Sold 2,000 of its treasury shares at $19 cash per share. Sold 2,000 of its treasury shares at $11 cash per share. Directors declared a $4 per share cash dividend payable on October 28 to the September 25 stockholders of record. October 28 Paid the dividend declared on September 5. December Closed the $388,000 credit balance (from net income) in the Income Summary account to Retained 31 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.
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, 50,000 shares issued and outstanding $ 500,000 Paid-in capital in excess of par value, common stock 80,000 Retained earnings 460,000 $ 1,040,000 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 $15 cash per share. January 5 February 28 July 6 August 22 Directors declared a $4 per share cash dividend payable on February 28 to the February 5 stockholders of record. September 5 Paid the dividend declared on January 5. Sold 2,000 of its treasury shares at $19 cash per share. Sold 2,000 of its treasury shares at $11 cash per share. Directors declared a $4 per share cash dividend payable on October 28 to the September 25 stockholders of record. October 28 Paid the dividend declared on September 5. December Closed the $388,000 credit balance (from net income) in the Income Summary account to Retained 31 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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Yu.25.
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, 50,000 shares issued and outstanding $ 500,000
Paid-in capital in excess of par value, common stock
80,000
460,000
Retained earnings
$ 1,040,000
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 $15 cash per share.
January 5
February 28
July 6
August 22
September 5
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.
Sold 2,000 of its treasury shares at $19 cash per share.
Sold 2,000 of its treasury shares at $11 cash per share.
Directors declared a $4 per share cash dividend payable on October 28 to the September 25 stockholders
of record.
October 28
Paid the dividend declared on September 5.
December Closed the $388,000 credit balance (from net income) in the Income Summary account to Retained
Earnings.
31
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.
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