Problem 11-2A Cash dividends, treasury stock, and statement of retained earnings LO C3, P2, P3

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-$10 par value, 100,000 shares authorized, 45,000 shares issued and outstanding Paid-in capital in excess Retained earnings $ 450,000 of par value, common stock 80,000 460,000 990,000 Total stockholders' equity In year 2017, the following transactions affected its stockholders' equity accounts. Jan Jan 1 Purchased 5,000 shares of its own stock at $20 cash per share. 5 Directors declared a $4 per share cash dividend payable on February 28 to the February 5 stockholders of record 28 Paid the dividend declared on January 5. Feb July Aug Sept 6 Sold 1,875 of its treasury shares at $24 cash per share. 22 Sold 3,125 of its treasury shares at $17 cash per share 5 Directors declared a $4 per share cash dividend payable on October 28 to the September 25 stockholders of record 28 Paid the dividend declared on September 5. 31 closed the $408, 000 credit balance (from net income) in the Income Summary account to Retained Earnings. Oct Dec 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 Required 1 Required 2 Required 3 Prepare journal entries to record each of these transactions for 2017. View transaction list Journal entry worksheet 2 8 1 3 4 5 6 7 Record the purchase of 5,000 shares of its own common stock for $20 cash per share Note: Enter debits before credits. Date Debit Credit General Journal Jan 01 Record entry Clear entry View general journal Required 1 Required 2 Required 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 0 S Required 1 Required 2 Required 3 Prepare the stockholders' equity section of the company's balance sheet as of December 31, 2017. KOHLER CORPORATION Stockholders' Equity Section of the Balance Sheet December 31, 2017 Total contributed capital 0 $ 0 Total stockholders' equity Required 2 Required 3