Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Kohler Corporation reports the following components of stockholders' equity on December 31, 2017 Common stock-$25 par value, 100, 000 shares authorized, 45,000 shares issued and

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 on December 31, 2017 Common stock-$25 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 $1,125,000 80,000 430,000 $1,635,000 In year 2018, the following transactions affected its stockholders' equity accounts. Jan. 1 Purchased 4,000 shares of its own stock at $20 cash per share. Jan. 5 Directors 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 1,589 of its treasury shares at $24 cash per share. Aug. 22 Sold 2,500 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 $408,000 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 2018 2. Prepare a statement of retained earnings for the year ended December 31, 2018 3. Prepare the stockholders' equity section of the company's balance sheet as of December 31, 2018. Complete this question by entering your answers in the tabs below Journal entry worksheet 1 2 3 4 5 6 7 8 Record the purchase of 4,000 shares of its own common stock for $20 cash per share. Note: Enter debits before credits. General Journal Date Jan 01 Debit Credit Record entry Clear entry View general journal View transaction list 2.5 points RELUIU Ule purchase UI 4,VUU SIDIES VI ILS UWII LUI stock for $20 cash per share. eBook 2 Record the declaration of a cash dividend of $6 per share. it balance Print References 3 Record the payment of the cash dividend. 4 Record the reissue of 1,500 shares of the treasury stock for $24 cash per share. Credit 5 Record the reissue of 2,500 shares of the treasury stock for $17 cash per share. 6 Record the declaration of a cash dividend of $6 per share. 7 Record the payment of the cash dividend. Note : = journal entry has been entered Record entry Clear entry View gener Required 1 | Required 2 Required 3 Prepare a statement of retained earnings for the year ended December indicated by a minus sign.) KOHLER CORPORATION Statement of Retained Earnings For Year Ended December 31, 2018 11

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

Accounting Principles Volume 1 And Volume 2

Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Warren, Lori Novak

9th Canadian Edition

1119786649, 978-1119786641

More Books

Students also viewed these Accounting questions

Question

2. What types of purposes do all business messages have?

Answered: 1 week ago

Question

How comparable are the groups in causal comparative studies?

Answered: 1 week ago