7.

[The following information applies to the questions displayed below.] Kohler Corporation reports the following components of stockholders' equity on December 31, 2015: Common stock-$20 par value, 100,000 shares authorized, 55,000 shares issued and outstanding Paid-in capital in excess of par value, common stock Retained earnings $ 1,100,000 70,000 430,000 Total stockholders' equity $1,600,000 In year 2016, the following transactions affected its stockholders' equity accounts. Jan. 1 Purchased 5,500 shares of its own stock at $20 cash per share. Jan. 5 Directors declared a $4 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 2,063 of its treasury shares at $24 cash per share. Aug.22 Sold 3,437 of its treasury shares at $17 cash per share. Sept. 5 Directors declared a $4 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. value: 1.78 points Required: 1. Prepare journal entries to record each of these transactions for 2016. View transaction list Journal entry worksheet Record the purchase of 5,500 shares of its own common stock for $20 cash per share. Note: Enter debits before credits. General Journal Debit Credit Date Jan 01 Record entry View general journal Clear entry 2. Prepare a statement of retained earnings for the year ended December 31, 2016. (Amounts to be deducted should be indicated by a minus sign.) KOHLER CORPORATION Statement of Retained Earnings For Year Ended December 31, 2016 References eBook & Resources Worksheet Learning Difficulty: 3 Hard Learning stock divid Check my work value: 1.78 points 3. Prepare the stockholders' equity section of the company's balance sheet as of December 31, 2016. KOHLER CORPORATION Stockholders' Equity Section of the Balance Sheet December 31, 2016 Total contributed capital Total stockholders' equity