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Kohler Corporation reports the following components of stockholders' equity at December 31, 2018. Common stock-$10 par value, 100,000 shares authorized, 45,000 shares issued and outstanding
Kohler Corporation reports the following components of stockholders' equity at December 31, 2018. Common stock-$10 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 $ 450,000 60,000 460,000 $ 970,000 During 2019, the following transactions affected its stockholders' equity accounts. Jan. 2 Purchased 4,000 shares of its own stock at $15 cash per share. Jan. 5 Directors declared a $4 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 1,500 of its treasury shares at $19 cash per share. Aug. 22 Sold 2,500 of its treasury shares at $12 cash per share. Sept. 5 Directors declared a $4 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 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. Journal entry worksheet 1 2 3 4 5 6 7 8 > Record the purchase of 4,000 shares of its own common stock for $15 cash per share. Note: Enter debits before credits. Date General Journal Debit Credit Jan 02 Record entry Clear entry View general journal Journal entry worksheet Record the payment of the cash dividend. Note: Enter debits before credits. Date General Journal Debit Credit Feb 28 Record entry Clear entry View general journal Journal entry worksheet 1 2 3 4 5 6 7 8 > Record the reissue of 1,500 shares of the treasury stock for $19 cash per share. Note: Enter debits before credits. ate General Journal Debit Credit Jul 06 Record entry Clear entry View general journal Journal entry worksheet Record the payment of the cash dividend. Note: Enter debits before credits. Date General Journal Debit Credit Oct 28 Record entry Clear entry View general journal Journal entry worksheet
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