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Only need help getting the 5th entry for Aug 22. Don't know why it says applying retained earnings is wrong. Thank you in advance! Problem
Only need help getting the 5th entry for Aug 22. Don't know why it says applying retained earnings is wrong. Thank you in advance! Problem 13-2A (Algo) Cash dividends, treasury stock, and statement of retained earnings LO C3, P2, P3 Kohler Corporation reports the following components of stockholders' equity at December 31 of the prior year. 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 70,000 Retained earnings 400,000 Total stockholders' equity 1,595,000 During the current year, the following transactions affected its stockholders' equity accounts. January 2 Purchased 5,000 shares of its own stock at $25 cash per share. January 5 Directors declared a $6 per share cash dividend payable on February 28 to the February 5 stockholders of record. Pebruary 28 Paid the dividend declared on January 5. July 6 Sold 1,875 of its treasury shares at $29 cash per share. August 22 Sold 3,125 of its treasury shares at $21 cash per share. No Date Credit Debit 125,000 1 General Journal Treasury stock, Common Cash January 02 125,000 2 January 05 240,000 Retained earnings Common dividend payable 240,000 3 February 28 240,000 Common dividend payable Cash 240,000 4 July 06 Cash 54,375 Treasury stock, Common Paid-In capital, Treasury stock 46,875 7,500 5 August 22 65,625 Cash Paid-In capital, Treasury stock Retained earnings Treasury stock, Common
Only need help getting the 5th entry for Aug 22. Don't know why it says applying retained earnings is wrong. Thank you in advance!
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