Problem 11-2A (Static) 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 of the prior year. Common stock-$10 par value, 100,000 shares authorized, 40,000 shares issued and outstanding Paid-in capital in excess of par value, common stock Retained earnings Total stockholders' equity During the current year, the following transactions affected its stockholders' equity accounts. $ 400,000 60,000 270,000 $730,000 January 2 Purchased 4,000 shares of its own stock at $20 cash per share. January 5 Directors declared a $2 per share cash dividend payable on February 28 to the February 5 stockholders of February 28 July 6 August 22 September 5 October 28 December 31 Required: record. Paid the dividend declared on January 5. Sold 2,000 of its treasury shares at $24 cash per share. Sold 2,000 of its treasury shares at $16 cash per share. Directors declared a $2 per share cash dividend payable on October 28 to the September 25 stockholders of record. Paid the dividend declared on September 5. Closed the $388,000 credit balance (from net income) in the Income Summary account to Retained Earnings. 1. Prepare journal entries to record each of these transactions. 2. Prepare a statement of retained earnings for the current year ended December 31. 3. Prepare the stockholders' equity section of the balance sheet as of December 31 of the current year. 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 current year ended December 31. (Amounts to be deducted should be indicated by a minus sign.) KOHLER CORPORATION Statement of Retained Earnings For Current Year Ended December 31 Retained earnings, December 31, current year Add: Net income $ 270,000 388,000 Required 1 Required 2 Required 3 Prepare journal entries to record each of these transactions. View transaction list View journal entry worksheet No 1 Date General Journal Debit Credit January 02 Treasury stock, Common Cash 80,000 80,000 2 January 05 Retained earnings Common dividend payable 72,000 72,000 3 February 28 Common dividend payable 72,000 Cash 72,000 4 July 06 Cash 48,000 Treasury stock, Common 40,000 Paid-in capital, Treasury stock 8,000 5 August 22 Cash 32,000 Paid-in capital, Treasury stock 8,000 6 September 05 Retained earnings Common dividend payable 7 October 28 Common dividend payable Cash 8 December 31 Income summary Retained earnings Required 1 Required 2 > Required: 1. Prepare journal entries to record each of these transactions. 2. Prepare a statement of retained earnings for the current year ended December 31. 3. Prepare the stockholders' equity section of the balance sheet as of December 31 of the current year. 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 current year ended December 31. (Amounts to be deducted should be indicated by a minus sign.) KOHLER CORPORATION Statement of Retained Earnings For Current Year Ended December 31 Retained earnings, December 31, current year Add: Net income Less: Cash dividends declared Retained earnings, December 31, prior year $ 270,000 388,000 $ 658,000 < Required 1 Required 3 > Required: 1. Prepare journal entries to record each of these transactions. 2. Prepare a statement of retained earnings for the current year ended December 31. 3. Prepare the stockholders' equity section of the balance sheet as of December 31 of the current year. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare the stockholders' equity section of the balance sheet as of December 31 of the current year. KOHLER CORPORATION Stockholders' Equity Section of the Balance Sheet Common stock-$10 par value December 31 Paid-in capital in excess of par value, common stock Total contributed capital Retained earnings Total stockholders' equity $ 400,000 60,000 460,000 $ 460,000 < Required 2 Required 3>