Question
Can you please show me the complete calculations and where the numbers are coming from because this is where i'm stuck. Thanks Kohler Corporation reports
Can you please show me the complete calculations and where the numbers are coming from because this is where i'm stuck. Thanks
Kohler Corporation reports the following components of stockholders equity on December 31, 2015
Common stock$25 par value, 100,000 shares authorized, 50,000 shares issued and outstanding | $ | 1,250,000 |
Paid-in capital in excess of par value, common stock | 70,000 | |
Retained earnings | 400,000 | |
Total stockholders equity | $ | 1,720,000 |
In year 2016, the following transactions affected its stockholders equity accounts.
Jan. | 1 | Purchased 5,000 shares of its own stock at $25 cash per share. | ||
Jan. | 5 | Directors declared a $2 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 1,875 of its treasury shares at $29 cash per share. | ||
Aug. | 22 | Sold 3,125 of its treasury shares at $22 cash per share. | ||
Sept. | 5 | Directors declared a $2 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 $388,000 credit balance (from net income) in the Income Summary account to Retained Earnings.
1. Prepare journal entries to record each of these transactions for 2016. These are the journal entry options:
a. Record the purchase of 5,000 shares of its own common stock for $25 cash per share. b.Record the declaration of a cash dividend of $2 per share. c.Record the payment of the cash dividend. d.Record the reissue of 1,875 shares of the treasury stock for $29 cash per share. e.Record the reissue of 3,125 shares of the treasury stock for $22 cash per share. f.Record the declaration of a cash dividend of $2 per share. g.Record the payment of the cash dividend. h.Record the entry to close the income summary account having a credit balance of $388,000.
2.2. Prepare a statement of retained earnings for the year ended December 31, 2016. (Amounts to be deducted should be indicated by a minus sign.) |
These are the options for the first line entry:
-
- Add: Cash dividends declared
- Add: Treasury stock reissuances
- Less: Cash dividends declared
- Less: Treasury stock reissuances
- Retained earnings, Dec. 31, 2015
- Retained earnings, Dec. 31, 2016
- Revenues
- Sales
|
3. Prepare the stockholders' equity section of the companys balance sheet as of December 31, 2016.
|
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