13-2A Cash dividends, treasury stock, and statement of retained earnings LO C3, P2, P3

Kohler Corporation reports the following components of stockholders equity on December 31, 2015: Common stock$15 par value, 100,000 shares authorized, 45,000 shares issued and outstanding $ 675,000 Paid-in capital in excess of par value, common stock 70,000 Retained earnings 460,000 Total stockholders equity $ 1,205,000 In year 2016, the following transactions affected its stockholders equity accounts. Jan. 1 Purchased 6,000 shares of its own stock at $25 cash per share. Jan. 5 Directors declared a $6 per share cash dividend payable on Feb. 28 to the Feb. 5 stockholders of record. Feb. 28 Paid the dividend declared on January 5. July 6 Sold 2,250 of its treasury shares at $29 cash per share. Aug. 22 Sold 3,750 of its treasury shares at $22 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.

Problem 13-2A Part 1

Required:
1.	Prepare journal entries to record each of these transactions for 2016.

Problem 13-2A Part 2

2.

Prepare a statement of retained earnings for the year ended December 31, 2016.

KOHLER CORPORATION

Statement of Retained Earnings

For Year Ended December 31, 2016

Problem 13-2A Part 3

3.	Prepare the stockholders' equity section of the companys balance sheet as of December 31, 2016. KOHLER CORPORATION Stockholders' Equity Section of the Balance Sheet December 31, 2016