Problem 11-2A (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, 2019 Common stock-$15 par value, 100,000 shares authorized, 60,000 shares issued and outstanding Paid-in capital in excess of par value, common stock Retained earnings Total stockholders equity $ 900,000 70,000 430,000 $1,400,000 During 2020, the following transactions affected its stockholders' equity accounts. Jan. 2 Purchased 5,000 shares of its own stock at $15 cash per share. Jan. 5 Directors declared a $4 per share cash dividend payable on February 28 to the February 5 stockholders of record. Teb. 28 Paid the dividend declared on January 5. July 6 Sold 1,875 of its treasury shares at $19 cash per share. Aug. 22 Sold 3,125 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 incone) in the Income Summary account to retained Earningo. Required: 1. Prepare journal entries to record each of these transactions. 2. Prepare a statement of retained earnings for the year ended December 31, 2020. 3. Prepare the stockholders' equity section of the company's balance sheet as of December 31, 2020. a Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare Journal entries to record each of these transactions. View transaction list View journal entry worksheet No Date Debit Credit 1 Jan 02 General Journal Treasury stock, Common Cash 75,000 75,000 View transaction list Journal entry worksheet View transaction list Journal entry worksheet View transaction list ces Journal entry worksheet View transaction list Journal entry worksheet Record the reissue of 1,875 shares of the treasury stock for $19 cash per share. Note: Enter debits before credits. Date General Journal Debit Credit Jul 06 Record entry Clear entry View general Journal View transaction list Journal entry worksheet Record the declaration of a cash dividend of $4 per share. Note: Enter debits before credits. Date General Journal Debit Credit Sep 05 Record entry Clear entry View general Journal View transaction list Journal entry worksheet Record the payment of the cash dividend. Note: Enter debits before credits. Date General Journal Debit Credit Oct 28 Record entry Clear entry View general Journal Journal entry worksheet 2 3 4 5 6 OD 7 > Record the entry to close the $408,000 credit balance (from net income) in the Income Summary account to Retained Earnings. Note: Enter debits before credits. Date General Journal Debit Credit Dec 31 Record entry Clear entry View general Journal Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare a statement of retained earnings for the year ended December 31, 2020. (Amounts to be deducted should be Indicated by a minus sign.) KOHLER CORPORATION Statement of Retained Earnings For Year Ended December 31, 2020 0 $ Required: 1. Prepare journal entries to record each of these transactions. 2. Prepare a statement of retained earnings for the year ended December 31, 2020. 3. Prepare the stockholders' equity section of the company's balance sheet as of December 31, 2020. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare the stockholders' equity section of the company's balance sheet as of December 31, 2020. KOHLER CORPORATION Stockholders' Equity Section of the Balance Sheet December 31, 2020 Total contributed capital 0 $ 0 Total stockholders' equity
