Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
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 \begin{tabular}{r} $825,000 \\ 80,000 \\ 430,000 \\ \hline$1,335,000 \\ \hline \end{tabular} During the current year, the following transactions affected its stockholders' equity accounts. January 2 Purchased 5,000 shares of its own stock at $20 cash per share. January 5 Directors declared a $2 per share cash dividend payable on February 28 to the February 5 stockhotders of record. February 28 Paid the dividend declared on January 5. Juty 6 Sold 2,500 of its treasury shares at $24 cash per share. August 22 Sold 2,500 of its treasury shares at $16 cash per share. September 5 Directors declared a $2 per share cash dividend payable on October 28 to the Septenber 25 stockholders o 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. Record the purchase of 5,000 shares of its own common stock for $20 cash per share. Record the declaration of a cash dividend of $2 per share. Record the payment of the cash dividend. Record the reissue of 2,500 shares of the treasury stock for $24 cash per share. Record the reissue of 2,500 shares of the treasury stock for $16 cash per share. Record the declaration of a cash dividend of $2 per share. Note : = journal entry has been entered Record the reissue of 2,500 shares of the treasury stock for $24 cash per share. Record the reissue of 2,500 shares of the treasury stock for $16 cash per share. Record the declaration of a cash dividend of $2 per share. Record the payment of the cash dividend. Record the entry to close the $428,000 credit balance (from net income) in the Income Summary account to Retained Earnings. Note : = journal entry has been entered KOHLER CORPORATION Statement of Retained Earnings For Current Year Ended December 31 \begin{tabular}{|l|l|} \hline Retained earnings, December 31, prior year & $440,000 \\ \hline Add: Net income & \\ \hline Less: Cash dividends declared & \\ \hline Retained earnings, December 31, current year & $430,000 \\ \hline \end{tabular} KOHLER CORPORATION Stockholders' Equity Section of the Balance Sheet

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Cost Accounting

Authors: Les Heitger, Pekin Ogan, Serge Matulich

2nd Edition

053881764X, 978-0538817646

More Books

Students also viewed these Accounting questions

Question

Are there diff erent kinds of memory?

Answered: 1 week ago

Question

Define an unfair labor practice and provide three or four examples.

Answered: 1 week ago