Question
Kohler Corporation reports the following components of stockholders equity at December 31 of the prior year . Common stock$15 par value, 100,000 shares authorized, 60,000
Kohler Corporation reports the following components of stockholders equity at December 31 of the prior year.
| Common stock$15 par value, 100,000 shares authorized, 60,000 shares issued and outstanding | $ 900,000 |
|---|---|
| Paid-in capital in excess of par value, common stock | 70,000 |
| Retained earnings | 400,000 |
| Total stockholders' equity | $ 1,370,000 |
During the current year, the following transactions affected its stockholders equity accounts.
| January 2 | Purchased 4,000 shares of its own stock at $25 cash per share. |
|---|---|
| January 5 | Directors declared a $6 per share cash dividend payable on February 28 to the February 5 stockholders of record. |
| February 28 | Paid the dividend declared on January 5. |
| July 6 | Sold 2,000 of its treasury shares at $29 cash per share. |
| August 22 | Sold 2,000 of its treasury shares at $21 cash per share. |
| September 5 | Directors declared a $6 per share cash dividend payable on October 28 to the September 25 stockholders of record. |
| October 28 | Paid the dividend declared on September 5. |
| December 31 | Closed the $428,000 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 current year ended December 31. 3. Prepare the stockholders equity section of the balance sheet as of December 31 of the current year.
| No | Date | General Journal | Debit | Credit |
|---|---|---|---|---|
| 1 | January 02 | Treasury stock, Common | 100,000 | |
| Cash | 100,000 | |||
| 2 | January 05 | Retained earnings | ||
| Common dividend payable | ||||
| 3 | February 28 | Common dividend payable | ||
| Cash | ||||
| 4 | July 06 | Cash | ||
| Treasury stock, Common | ||||
| Paid-In capital, Treasury stock | ||||
| 5 | August 22 | Cash | ||
| Paid-In capital, Treasury stock | ||||
| Retained earnings | ||||
| Treasury stock, Common | ||||
| 6 | September 05 | Retained earnings | ||
| Common dividend payable | ||||
| 7 | October 28 | Income summary | ||
| Retained earnings | ||||
| 8 | December 31 | Income summary | ||
| Retained earnings |
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Final Work On Internal Audit Internal Audit And Its Management
Authors: Silvia Mamani
1st Edition
6203099651, 978-6203099652
