GL 1301- Based on Problem 13 - 2A Kohler Company LO C3,P2, P3
GL1301 - Based on Problem 13-2A Kohler Company LO C3, P2, P3 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 Paid-in capital in excess of par value, common stock Retained earnings Total stockholders' equity $ 400,000 60,000 270,000 $ 730,000 During the year, the following transactions affected its stockholders' equity accounts. Jan. Jan. Feb. July Aug. Sept. Oct. Dec. 2 Purchased 4,000 shares of its own stock at $20 cash per share. 5 Directors declared a $2 per share cash dividend payable on February 28 to the February 5 stockholders of record. 28 Paid the dividend declared on January 5. 6 Sold 1,500 of its treasury shares at $24 cash per share. 22 Sold 2,500 of its treasury shares at $17 cash per share. 5 Directors declared a $2 per share cash dividend payable on October 28 to the September 25 stockholders of record. 28 Paid the dividend declared on September 5. 31 Closed the $388,000 credit balance (from net income) in the Income Summary account to Retained Earnings. Requirement General Journal General Ledger Trial Balance Statement of RE Stockholders Equity Impact on Equity General Journal tab - Prepare the necessary journal entries. Statement of Retained Earnings tab - Prepare the Statement of Retained Earnings for the Kohler Corporation for the year ended December 31. Stockholders' Equity tab - Prepare the Stockholders' equity section of Kohler Corporation's December 31 balance sheet. Impact on Equity tab - For each transaction, indicate the total change in Stockholders' Equity, if any. Verify that total equity, as calculated, agrees with the amount reported on the Stockholders' Equity tab. No Date Account Title Debit Credit 1 Jan 02 80,000 Treasury stock, Common Cash 80,000 2 Jan 05 72,000 Retained earnings Common dividend payable 72,000 Feb 28 0 72,000 > Common dividend payable Cash 72,000 4 Jul 06 Cash 36,000 Treasury stock, Common Paid-in capital, Treasury stock 5 Aug 22 Cash 42,500 Paid-in capital, Treasury stock Retained earnings Paid-in capital, Treasury stock x 6 Sep 05 Retained earnings Common dividend payable 7 Oct 28 88,000 Common dividend payable Cash 88,000 X 8 Dec 31 388,000 Income summary Retained earnings 388,000 Requirement General Journal General Ledger Trial Balance Statement of RE Stockholders Equity Impact on Equity Prepare the Statement of Retained Earnings for Kohler Corporation for the year ended December 31. KOHLER CORPORATION Statement of Retained Earnings For Year Ended December 31 0 $ 0 Dates: Jan 01 to: Dec 31 Impact on equity $ Total Stockholders' Equity - January 1 Jan. 2) Purchased 4,000 shares of its own stock at $20 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. Jul. 6) Sold 1,500 of its treasury shares at $24 cash per share. Aug. 22) Sold 2,500 of its treasury shares at $17 cash per share. Sep. 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
