Problem 13-2A (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. January 2 Purchased 4,000 shares of its own stock at $20 cash per share. $ 400,000 60,000 270,000 $730,000 January 5 Directors declared a $2 per share cash dividend payable on February 28 to the February 5 stockholders of record. February 28 July 6 August 22 September 5 October 28 December 31 Required: 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. < Prev 1 of 7 Next > Journal entry worksheet < 1 2 3 4 5 6 7 8 Record the purchase of 4,000 shares of its own common stock for $20 cash per share. Note: Enter debits before credits. Date General Journal Debit Credit January 02 Paid-in capital, Treasury stock 80,000 Cash 80,000 Record entry Clear entry View general journal Required 1 Required 2 > 5:30 ok t Journal entry worksheet < 2 3 5 6 7 8 4 Record the declaration of a cash dividend of $2 per share. Note: Enter debits before credits. Date General Journal Debit Credit nces January 05 Retained earnings 92,000 Common dividend payable 92,000 Record entry Clear entry View general journal Required 1 Required 2 > Journal entry worksheet 2 3 Record the payment of the cash dividend. Note: Enter debits before credits. Date 5 7 8 General Journal Debit Credit 192,000 192,000 February 28 Common dividend payable Cash Record entry Clear entry View general journal Required 1 Required 2> Journal entry worksheet < 2 3 5 6 7 8 Record the reissue of 2,000 shares of the treasury stock for $24 cash per share. Note: Enter debits before credits. General Journal Debit Credit Date July 06 Cash Treasury stock, Common Paid-in capital, Treasury stock Record entry Clear entry View general journal > Journal entry worksheet > 2 3 5 6 7 8 Record the reissue of 2,000 shares of the treasury stock for $16 cash per share. Note: Enter debits before credits. General Journal Debit Credit Date August 22 Cash Paid-in capital, Treasury stock Retained earnings Paid-in capital, Treasury stock Record entry Clear entry View general journal > Journal entry worksheet < 1 2 3 5 Record the declaration of a cash dividend of $2 per share. Note: Enter debits before credits. 7 8 Date General Journal Debit Credit September 05 Retained earnings Common dividend payable Record entry Clear entry View general journal > Journal entry worksheet < 1 2 3 Record the payment of the cash dividend. Note: Enter debits before credits. Date 6 3 8 General Journal Debit Credit October 28 Common dividend payable Cash Record entry Clear entry View general journal Journal entry worksheet > 1 2 3 5 6 7 Record the entry to close the $388,000 credit balance (from net income) in the Income Summary account to Retained Earnings. Note: Enter debits before credits. Date December General Journal Debit Credit Income summary 31 Retained earnings Record entry Clear entry View general journal 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. Note: Amounts to be deducted should be indicated by a minus sign. KOHLER CORPORATION Statement of Retained Earnings For Current Year Ended December 31 < Required 1 Required 3 > 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 December 31 Total contributed capital Total stockholders' equity < Required 2 0 $ 0 Required 3>