EXPLAIN CALCULATIONS WITH STEPS Kohler Corporation reports the following components of stockholders equity at December 31, 2018 Common stock$15 par value, 100,000 shares authorized, 50,000 shares issued and outstanding $ 750,000 Paid in capital in excess of par value, common stock 70,000 Retained earnings 370,000 Total stockholders' equity $ 1,190,000 During 2019, the following transactions affected its stockholders equity accounts Jan 2 Purchased 5,000 shares of its own stock at $20 cash per share Jan 5 Directors declared a $4 per share cash dividend payable on February 28 to the February 5 stockholders of record Feb 28 Paid the dividend declared on January 5 July 6 Sold 1,875 of its treasury shares at $24 cash per share Aug 22 Sold 3,125 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 $408,000 credit balance (from net income) in the Income Summary account to Retained Earnings Required 1 Prepare journal entries to record each of these transactions 2 Prepare a statement of retained earnings for the year ended December 31, 2019 3 Prepare the stockholders equity section of the companys balance sheet as of December 31, 2019 Record the purchase of 5,000 shares of its own common stock for $20 cash per share Record the declaration of a cash dividend of $4 per share Record the payment of the cash dividend Record the reissue of 1,875 shares of the treasury stock for $24 cash per share Record the reissue of 3,125 shares of the treasury stock for $17 cash per share Record the declaration of a cash dividend of $4 per share Record the payment of the cash dividend Record the entry to close the $408,000 credit balance (from net income) in the Income Summary account to Retained Earnings

The Answer is in the image, click to view ...

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Jul 18, 2024

EXPLAIN CALCULATIONS WITH STEPS Kohler Corporation reports the following components of stockholders equity at December 31, 2018. Common stock$15 par value, 100,000 shares authorized, 50,000

EXPLAIN CALCULATIONS WITH STEPS

Kohler Corporation reports the following components of stockholders equity at December 31, 2018.


Common stock$15 par value, 100,000 shares authorized, 50,000 shares issued and outstanding	$	750,000
Paid-in capital in excess of par value, common stock		70,000
Retained earnings		370,000
Total stockholders' equity	$	1,190,000

During 2019, the following transactions affected its stockholders equity accounts.

Jan.	2	Purchased 5,000 shares of its own stock at $20 cash per share.
Jan.	5	Directors declared a $4 per share cash dividend payable on February 28 to the February 5 stockholders of record.
Feb.	28	Paid the dividend declared on January 5.
July	6	Sold 1,875 of its treasury shares at $24 cash per share.
Aug.	22	Sold 3,125 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 $408,000 credit balance (from net income) in the Income Summary account to Retained Earnings.

Required: 1. Prepare journal entries to record each of these transactions. 2. Prepare a statement of retained earnings for the year ended December 31, 2019. 3. Prepare the stockholders equity section of the companys balance sheet as of December 31, 2019.