Question
Problem 11-2A Cash dividends, treasury stock, and statement of retained earnings LO C3, P2, P3 [The following information applies to the questions displayed below.] Kohler
Problem 11-2A Cash dividends, treasury stock, and statement of retained earnings LO C3, P2, P3
[The following information applies to the questions displayed below.]
Kohler Corporation reports the following components of stockholders equity on December 31, 2015: |
Common stock$15 par value, 100,000 shares authorized, 45,000 shares issued and outstanding | $ | 675,000 |
Paid-in capital in excess of par value, common stock | 80,000 | |
Retained earnings | 430,000 | |
Total stockholders equity | $ | 1,185,000 |
|
In year 2016, the following transactions affected its stockholders equity accounts. | |||
Jan. | 1 | Purchased 5,000 shares of its own stock at $20 cash per share. | |
Jan. | 5 | Directors declared a $6 per share cash dividend payable on Feb. 28 to the Feb. 5 stockholders of record. | |
Feb. | 28 | Paid the dividend declared on January 5. | |
July | 6 | Sold 1,875 of its treasury shares at $24 cash per share. | |
Aug. | 22 | Sold 3,125 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 $428,000 credit balance (from net income) in the Income Summary account to Retained Earnings. |
Problem 11-2A Part 1
Required: | |||
1. | Prepare journal entries to record each of these transactions for 2016. | ||
Problem 11-2A Part 2
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Problem 11-2A Part 3
3. | Prepare the stockholders' equity section of the companys balance sheet as of December 31, 2016. |
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