Answered step by step
Verified Expert Solution
Question
1 Approved Answer
How do I calculate the retained earnings vs paid in capital? I know they need to equal $11250. Kohler Corporation reports the following components of
How do I calculate the retained earnings vs paid in capital? I know they need to equal $11250.
Kohler Corporation reports the following components of stockholders' equity at December 31, 2018. Common stock-$25 par value, 100,000 shares authorized, 45,000 shares issued and outstanding Paid-in capital in excess of par value, common stock Retained earnings Total stockholders' equity $1,125,000 60,000 370,000 $1,555,000 During 2019, the following transactions affected its stockholders' equity accounts. Jan. 2 Purchased 6,000 shares of its own stock at $15 cash per share. Jan. 5 Directors declared a $2 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 2,250 of its treasury shares at $19 cash per share. Aug 22 Sold 3,750 of its treasury shares at $12 cash per share. Sept. 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. Dec. 31 Closed the $388,000 credit balance (from net income) in the Income Summary account to Retained Earnings. Oct. 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 company's balance sheet as of December 31, 2019. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare journal entries to record each of these transactions. View transaction list Journal entry worksheet 4 5 6 7 8 > Record the reissue of 3,750 shares of the treasury stock for $12 cash per share. Journal entry worksheet Record the reissue of 3,750 shares of the treasury stock for $12 cash per share. Note: Enter debits before credits. Debit Credit Date Aug 22 45,000 General Journal Cash Paid-In capital, Treasury stock Retained earnings Treasury stock, Common 56,250 Record entry Clear entry View general journalStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started