Problem 11-2A Cash dividends, treasury stock, and statement of retained earnings LO C3, P2, P3 Kohler Corporation reports the following components of stockholders' equity on December 31, 2016 Common stock-$25 par value, 1, shares authorized, 55, shares issued and outstanding Paid-in capital in excess of par value, common stock Retained earnings Total stockholders' equity $1, 375, e00 70,000 $1, 845 , 000 In year 2017, the following transactions affected its stockholders' equity accounts. Purchased 6, shares of its own stock at $2 cash per share Jan 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 2, 250 of its treasury shares at $24 cash per share. Aug 22 Sold 3,750 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 $408, credit balance (from net income) in the Income Summary account to Retained Earnings. Required: 1. Prepare journal entries to record each of these transactions for 2017 2. Prepare a statement of retained earnings for the year ended December 31, 2017 3. Prepare the stockholders' equity section of the company's balance sheet as of December 31, 2017 Complete this question by entering your answers in the tabs below Required 1 Required 2 Required 3 Prepare journal entries to record each of these transactions for 2017. View transaction list View journal entry worksheet View transaction list View journal entry worksheet No General Journal Debit Paid-In capital, Treasury stock Jan 01 Cash Jan 05 Retained earnings Common dividend payable Feb 28 Common dividend payable Cash Cash Treasury stock, Common Paid-In capital, Treasury stock 4 Jul 06 Aug 22 Cash Paid-In capital, Treasury stock Retained earnings Treasury stock, Common Retained earnings Sep 05 Common dividend payable Oct 28 Common dividend payable Cash 8 Dec 31 Income summary Retained earnings Required 2 Required 1 Complete this question by entering your answers in the tabs below. Required 1Required 2Required 3 Prepare a statement of retained earnings for the year ended December 31, 2017. (Amounts to be deducted should be indicated by a minus sign.) KOHLER CORPORATION Statement of Retained Earnings For Year Ended December 31, 2017 Retained earnings, Dec. 31, 2016 Add: Net income 0 Less: Cash dividends declared Less: Treasury stock reissuances Retained earnings, Dec. 31, 2017$ 0
