Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Retained earnings Total stockholders' equity 430,000 $1,490,000 During 2019, the following transactions affected its stockholders' equity accounts. Jan. Jan. Feb. July Aug. Sept. 2 Purchased

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Retained earnings Total stockholders' equity 430,000 $1,490,000 During 2019, the following transactions affected its stockholders' equity accounts. Jan. Jan. Feb. July Aug. Sept. 2 Purchased 5,000 shares of its own stock at $15 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. 6 Sold 1,875 of its treasury shares at $19 cash per share. 22 Sold 3,125 of its treasury shares at $12 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 $388,000 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. 2. Prepare a statement of retained earnings for the year ended December 31, 2019. 3. Prepare the stockholders' equity section of the company's balance sheet as of December 31, 2019, Complete this question by entering your answers in the tabs below. Requires 1 Required 2 Required 3 Prepare journal entries to record each of these transactions, View transaction list View journal entry worksheet Credit No Date Debit 75,000 1 Jan 02 General Journal Treasury stock, Common Cash 75,000 30,000 lan 06 Ratained earnings Credit No Date Debit 75,000 1 Jan 02 General Journal Treasury stock, Common Cash 75,000 30,000 2 Jan 05 Retained earnings Common dividend payable 30,000 30,000 3 Feb 28 Common dividend payable Cash 4 Jul 06 Cash Treasury stock, Common Paid-in capital, Treasury stock 35,625 28,125 7,500 on Aug 22 Cash Paid-In capital, Treasury stock Retained earnings Treasury stock, Common 37,500 7,500 1,875 46,875 6 Sep 05 200,000 Retained earnings Common dividend payable 200,000 7 Oct 28 Common dividend payable Cash 200,000 200,000 OD Dec 31 Income summary Retained earnings 388,000 388,000 Required 1 Required 2 Required 3 Prepare a statement of retained earnings for the year ended December 31, 2019. (Amounts to be deducted indicated by a minus sign.) KOHLER CORPORATION Statement of Retained Earnings For Year Ended December 31, 2019 Ending retained earnings $ Add: Net Income 430,000 388,000 818,000 Less: Cash dividends declared Less: Treasury stock reissuances Ending retained earnings 818,000 Voy Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare the stockholders' equity section of the company's balance sheet as of December 31, 2019. KOHLER CORPORATION Stockholders' Equity Section of the Balance Sheet December 31, 2019 Total contributed capital $ 0 Total stockholders' equity Kohler Corporation reports the following components of stockholders' equity at December 31, 2018. Common stock-$20 par value, 100,000 shares authorized, 50,000 shares issued and outstanding Paid-in capital in excess of par value, common stock Retained earnings Total stockholders' equity $1,000,000 60,000 430,000 $1,490,000 During 2019, the following transactions affected its stockholders' equity accounts. Jan. Jan. Feb. July Aug. Sept. 2 Purchased 5,000 shares of its own stock at $15 cash per share. 5 Directors declared a $4 per share cash dividend payable on February 28 to the February 5 record. 28 Paid the dividend declared on January 5. 6 Sold 1,875 of ts treasury shares at $19 cash per share. 22 Sold 3,125 of its treasury shares at $12 cash per share. 5 Directors declared a $4 per share cash dividend payable on October 28 to the September record. 28 Paid the dividend declared on September 5. 31 closed the $388,000 credit balance (from net income) in the Income Summary account to R Oct. Dec. Required: 1. Prepare journal entries to record each of these transactions. 2. Prepare a statement of retained earnings for the year ended December 31, 2019. 3. Prepare the stockholders' equity section of the company's balance sheet as of December 31, 2019. Complete this question by entering your answers in the tabs below

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting A Key To Your Success In The Exam

Authors: Victoria Dobrynskaya

2nd Edition

3843389713, 978-3843389716

More Books

Students also viewed these Accounting questions

Question

1. What are your creative strengths?

Answered: 1 week ago

Question

What metaphors might describe how we work together?

Answered: 1 week ago