Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

PLEASE FOLLOW THE SAME FORMAT AND SHOW HOW YOU GOT YOUR ANSWER! THANKS Kohler Corporation reports the following components of stockholders' equity at December 31

PLEASE FOLLOW THE SAME FORMAT AND SHOW HOW YOU GOT YOUR ANSWER! THANKS image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed

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, 55,000 shares issued and outstanding Paid-in capital in excess of par value, common stock Retained earnings Total stockholders' equity $ 1,375,000 80,000 400,000 $ 1,855,000 During the current year, the following transactions affected its stockholders' equity accounts. January 2 Purchased 5,000 shares of its own stock at $15 cash per share. January 5 Directors declared a $2 per share cash dividend payable on February 28 to the February 5 stockholders of record. February 28 Paid the dividend declared on January 5. July 6 Sold 1,875 of its treasury shares at $19 cash per share. August 22 Sold 3,125 of its treasury shares at $11 cash per share. September 5 Directors declared a $2 per share cash dividend payable on October 28 to the September 25 stockholders of record. October 28 Paid the dividend declared on September 5. December 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. 2. Prepare a statement of retained earnings for the current year ended December 31. 3. Prepare the stockholders' equity section of the balance sheet as of December 31 of the current year. No Date General Journal Debit Credit 1 January 02 Treasury stock, Common 75,000 Cash 75,000 2 January 05 Retained earnings Common dividend payable 3 February 28 Common dividend payable Cash 4 July 06 Cash Treasury stock, Common Paid-In capital, Treasury stock 5 August 22 Cash Paid-In capital, Treasury stock Treasury stock, Common 6 September 05 Retained earnings Common dividend payable 7 October 28 Common dividend payable Cash 8 December 31 Income summary 408,000 Retained earnings 408,000 Prepare a statement of retained earnings for the current year ended December 31. (Amounts to be deducted should be indicated by a minus sign.) KOHLER CORPORATION Statement of Retained Earnings For Current Year Ended December 31 Retained earnings, December 31, prior year Add: Net income Less: Cash dividends declared Retained earnings, December 31, current year 0 Required: 1. Prepare journal entries to record each of these transactions. 2. Prepare a statement of retained earnings for the current year ended December 31. 3. Prepare the stockholders' equity section of the balance sheet as of December 31 of the current year. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare the stockholders' equity section of the balance sheet as of December 31 of the current year. KOHLER CORPORATION Stockholders' Equity Section of the Balance Sheet December 31 0 Paid-in capital in excess of par value, common stock Total contributed capital Retained earnings Total stockholders' equity 0

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

Security And Audit Field Manual

Authors: Alex Meyer, Mark Polino

1st Edition

B0B72Q3V4M, 979-8841258483

More Books

Students also viewed these Accounting questions

Question

what is a hash table

Answered: 1 week ago