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, $55,000$ shares issued and outstanding

Paid$-$in capital in excess of par value, common, stock

Retained earnings

Total stockholders' equity

During the current year, the following transactions affected its stockholders' equity accounts.

January $2$ Purchased $6,000$ shares of its own stock at $$20$ cash per share.

January $5$ Directors declared a $$4$ 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 $3,000$ of its treasury shares at $$24$ cash per share.

August $22$ Sold $3,000$ of its treasury shares at $$16$ cash per share.

October $28$ Paid the dividend declared on September $5.$

December $31$ Closed the $$408,000$ credit balance $($from net income$)$ in the Income Summary account to Retained Earnings.

Required:

Prepare journal entries to record each of these transactions.

Prepare a statement of retained earnings for the current year ended December $31.$

Prepare the stockholders' equity section of the balance sheet as of December $31$ of the current year.

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Prepare journal entries to record each of these transactions.

Journal entry worksheet

Assessment Tool iFra

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