Kohler Corporation reports the following components of stockholders’ equity on January 1.   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 the 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. February 28 Paid the dividend declared on January 5. July 6 Sold 2,000 of its treasury shares at $24 cash per share. August 22 Sold 2,000 of its treasury shares at $16 cash per share. September 5 Directors declared a $2 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 31 Closed the $388,000 credit balance (from net income) in the Income Summary account to Retained Earnings.

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If I had the following information. What would the journal entry, Statement of Retained Earnings, stockholders' equity section, and impact on total stockholders' equity look like?

Kohler Corporation reports the following components of stockholders’ equity on January 1.
 

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 the 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.
February 28 Paid the dividend declared on January 5.
July 6 Sold 2,000 of its treasury shares at $24 cash per share.
August 22 Sold 2,000 of its treasury shares at $16 cash per share.
September 5 Directors declared a $2 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 31 Closed the $388,000 credit balance (from net income) in the Income Summary account to Retained Earnings.
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**Table: Impact on Stockholders' Equity**

| Date                  | Description                                                                                         | Impact on Equity                     | Amount         |
|-----------------------|-----------------------------------------------------------------------------------------------------|--------------------------------------|----------------|
| **Total Stockholders' Equity - January 1** |                                                                                                     |                                      | **$730,000**   |
| **January 2**         | Purchased 4,000 shares of its own stock at $20 cash per share.                                        | Stockholders' equity decreased       |                |
| **January 5**         | Directors declared a $2 per share cash dividend payable on Feb. 28 to the Feb. 5 stockholders of record. | Stockholders' equity decreased       |                |
| **February 28**       | Paid the dividend declared on January 5.                                                             | No change in total equity            |                |
| **July 6**            | Sold 2,000 of its treasury shares at $24 cash per share.                                            | Stockholders' equity increased       |                |
| **August 22**         | Sold 2,000 of its treasury shares at $16 cash per share.                                            | Stockholders' equity increased       |                |
| **September 5**       | Directors declared a $2 per share cash dividend payable on October 28 to the September 25 stockholders of record. | Stockholders' equity decreased       |                |
| **October 28**        | Paid the dividend declared on September 5.                                                          | No change in total equity            |                |
| **December 31**       | Closed the $388,000 credit balance (from net income) in the Income Summary account to Retained Earnings. | Stockholders' equity increased       |                |

This table provides a detailed timeline of transactions and events impacting a company’s stockholders' equity. It highlights purchases, sales, and dividends, explaining their effects on equity throughout the year.
Transcribed Image Text:**Table: Impact on Stockholders' Equity** | Date | Description | Impact on Equity | Amount | |-----------------------|-----------------------------------------------------------------------------------------------------|--------------------------------------|----------------| | **Total Stockholders' Equity - January 1** | | | **$730,000** | | **January 2** | Purchased 4,000 shares of its own stock at $20 cash per share. | Stockholders' equity decreased | | | **January 5** | Directors declared a $2 per share cash dividend payable on Feb. 28 to the Feb. 5 stockholders of record. | Stockholders' equity decreased | | | **February 28** | Paid the dividend declared on January 5. | No change in total equity | | | **July 6** | Sold 2,000 of its treasury shares at $24 cash per share. | Stockholders' equity increased | | | **August 22** | Sold 2,000 of its treasury shares at $16 cash per share. | Stockholders' equity increased | | | **September 5** | Directors declared a $2 per share cash dividend payable on October 28 to the September 25 stockholders of record. | Stockholders' equity decreased | | | **October 28** | Paid the dividend declared on September 5. | No change in total equity | | | **December 31** | Closed the $388,000 credit balance (from net income) in the Income Summary account to Retained Earnings. | Stockholders' equity increased | | This table provides a detailed timeline of transactions and events impacting a company’s stockholders' equity. It highlights purchases, sales, and dividends, explaining their effects on equity throughout the year.
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