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, 2018. Common stock-$15 par value, 100,000 shares authorized, 45,000 shares issued and outstanding

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
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, 2018. Common stock-$15 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 $ 675,000 80,000 400,000 $1,155,000 During 2019, the following transactions affected its stockholders' equity accounts. Jan. 24Purchased 5,500 shares of its own stock at $20 cash per share. Jan. stDirectors declared a $6 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 2,063 of its treasury shares at $24 cash per share. Aug. 22 Sold 3,437 of its treasury shares at $17 cash per share. Sept. 5 Directors declared a $6 per share cash dividend payable on October 28 to the September 25 stockholders of record. Oct. 28 Paid the dividend declared on September 5. Dec. 31 Closed the $388,000 credit balance (from net incono) 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. Saved Required 1 Required 2 Required 3 repare journal entries to record each of these transactions. View transaction list Journal entry worksheet 1 2 3 5 6 7 8 Record the payment of the cash dividend. Note: Enter debits before credits. Debit Credit Date Feb 28 General Journal Common dividend payable Cash 158,000 158,000 Record entry Clear entry View general journ Record the reissue of 3,437 shares of the treasury stock for $17 cash per share. Note: Enter debits before credits. General Journal Debit Credit Date Aug 22 58,429 Cash Paid-in capital, Treasury stock Retained earnings Treasury stock, Common 8,252 2,059 68,740 Record entry Clear entry View general journal $ 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 the stockholders' equity section of the company's balance sheet as of December 31, 2019. ces KOHLER CORPORATION Stockholders' Equity Section of the Balance Sheet December 31, 2019 Common stock - $15 par value 675,000 Pald-in capital in excess of par value, common stock 80,000 Total contributed capital 755,000 Retained earnings 477,941 Total stockholders' equity $ 1,232,941

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

Contemporary Auditing Real Issues And Cases

Authors: Michael C. Knapp

7th Edition

0324658052, 978-0324658057

More Books

Students also viewed these Accounting questions

Question

The inequality x 2 + 1 Answered: 1 week ago

Answered: 1 week ago

Question

Describe the major barriers to the use of positive reinforcement.

Answered: 1 week ago