Question
Kohler Corporation reports the following components of stockholders equity on December 31, 2015 Common stock$25 par value, 100,000 shares authorized, 45,000 shares issued and outstanding
Kohler Corporation reports the following components of stockholders equity on December 31, 2015
Common stock$25 par value, 100,000 shares authorized, 45,000 shares issued and outstanding | $ | 1,125,000 |
Paid-in capital in excess of par value, common stock | 60,000 | |
Retained earnings | 400,000 | |
Total stockholders equity | $ | 1,585,000 |
In year 2016, the following transactions affected its stockholders equity accounts.
Jan. | 1 | Purchased 6,000 shares of its own stock at $15 cash per share. | ||||||||||||||||||||||||||||||||||||||
Jan. | 5 | Directors declared a $4 per share cash dividend payable on Feb. 28 to the Feb. 5 stockholders of record. | ||||||||||||||||||||||||||||||||||||||
Feb. | 28 | Paid the dividend declared on January 5. | ||||||||||||||||||||||||||||||||||||||
July | 6 | Sold 2,250 of its treasury shares at $19 cash per share. | ||||||||||||||||||||||||||||||||||||||
Aug. | 22 | Sold 3,750 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 $408,000 credit balance (from net income) in the Income Summary account to Retained Earnings.
Journal Entry Worksheet Record the purchase of 6,000 shares of its own common stock for $15 cash per share. Record the declaration of a cash dividend of $4 per share. Record the payment of the cash dividend. Record the reissue of 2,250 shares of the treasury stock for $19 cash per share. Record the reissue of 3,750 shares of the treasury stock for $12 cash per share. Record the declaration of a cash dividend of $4 per share. Record the payment of the cash dividend. Record the entry to close the income summary account having a credit balance of $408,000.
*Enter debits before credits
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2. Prepare a statement of retained earnings for the year ended December 31, 2016. (Amounts to be deducted should be indicated by a minus sign.)
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3. Prepare the stockholders' equity section of the companys balance sheet as of December 31, 2016.
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