Question
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
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, 2015 |
| Common stock$20 par value, 100,000 shares authorized, 55,000 shares issued and outstanding | $ | 1,100,000 |
| Paid-in capital in excess of par value, common stock | 80,000 | |
| Retained earnings | 370,000 | |
| Total stockholders equity | $ | 1,550,000 |
| In year 2016, the following transactions affected its stockholders equity accounts. | |||||||||||
| Jan. | 1 | Purchased 4,500 shares of its own stock at $20 cash per share. | |||||||||
| Jan. | 5 | Directors declared a $4 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 1,688 of its treasury shares at $24 cash per share. | |||||||||
| Aug. | 22 | Sold 2,812 of its treasury shares at $17 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 income) in the Income Summary account to Retained Earnings.
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Swanson On Internal Auditing Raising The Bar
Authors: IT Governance Publishing
1st Edition
1849280673, 978-1849280679
