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I have tried this question multiple times, getting it wrong every time. Am I supposed to add in the reissuance of the treasury stock? Kohler
I have tried this question multiple times, getting it wrong every time. Am I supposed to add in the reissuance of the treasury stock?
Kohler Corporation reports the following components of stockholders' equity at December 31, 2018. 1.66 points Common stock-$25 par value, 100,000 shares authorized, 55,000 shares issued and outstanding Paid-in capital in excess of par value, common stock Retained earnings Total stockholders' equity $1,375,000 70,000 460,000 $1,905,000 During 2019, the following transactions affected its stockholders' equity accounts. Jan. Jan. Feb. July Aug. Sept. Oct. Dec. 2 Purchased 5,000 shares of its own stock at $15 cash per share. 5 Directors declared a $4 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 1,875 of its treasury shares at $19 cash per share. 22 Sold 3,125 of its treasury shares at $12 cash per share. 5 Directors declared a $4 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 $368,000 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 company's balance sheet as of December 31, 2019. Required 1 Required 2 Required 3 Prepare a statement of retained earnings for the year indicated by a minus sign.) 1.66 points KOHLER CORPORATION Statement of Retained Earnings For Year Ended December 31, 2019 Beginning retained earnings $ 460,000 Add: Net income 368,000 828,000 Less: Cash dividends declared (420,000) Ending retained earnings S 408,000 Complete this question by entering your answers in the tabs below. 1.66 Required 1 Required 2 Required 3 points Prepare the stockholders' equity section of the company's balance sheet as of December 31, 2019. KOHLER CORPORATION Stockholders' Equity Section of the Balance Sheet December 31, 2019 Common stock - $25 par value $ 1,375,000 Paid-in capital in excess of par value, common stock O 70,000 Total contributed capital 1,445,000 Retained earnings 408,000 Total stockholders' equity $ 1,853,000Step by Step Solution
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