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Kohler Corporation reports the following components of stockholders equity on December 31, 2016: In year 2017, the following transactions affected its stockholders equity accounts. Jan.
Kohler Corporation reports the following components of stockholders equity on December 31, 2016:
In year 2017, the following transactions affected its stockholders equity accounts.
Jan. | 1 | Purchased 5,000 shares of its own stock at $20 cash per share. |
Jan. | 5 | Directors declared a $2 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 1,875 of its treasury shares at $24 cash per share. |
Aug. | 22 | Sold 3,125 of its treasury shares at $17 cash per share. |
Sept. | 5 | Directors declared a $2 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 $368,000 credit balance (from net income) in the Income Summary account to Retained Earnings. |
Required: 1. Prepare journal entries to record each of these transactions for 2017. 2. Prepare a statement of retained earnings for the year ended December 31, 2017. 3. Prepare the stockholders' equity section of the companys balance sheet as of December 31, 2017.
$ Common stock-$25 par value, 100,000 shares authorized, 40,000 shares issued and outstanding Paid-in capital in excess of par value, common stock Retained earnings Total stockholders' equity 1,000,000 70,000 400,000 1,470,000 $Step by Step Solution
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