Answered step by step
Verified Expert Solution
Question
1 Approved Answer
What is the question to this question? Kohler Corporation reports the following components of stockholders' equity at December 31, 2018. Problem 13-2A Cash dividends, treasury
What is the question to this question?
Kohler Corporation reports the following components of stockholders' equity at December 31, 2018. Problem 13-2A Cash dividends, treasury stock, and statement of retained earnings C3 P2 P3 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 $400.000 60.000 270.000 $730.000 Aug. 22 During 2019, the following transactions affected its stockholders' equity accounts. Jan. 2 Purchased 4,000 shares of its own stock at $20 cash per share. Jan. 5 Directors declared a $2 per share cash dividend payable on February 28 to the February 5 stockholders of record, Feb. 28 Paid the dividend declared on January 5. July 6 Sold 1,500 of its treasury shares at $24 cash per share. Sold 2,500 of its treasury shares at $17 cash per share. Sep. 5 Directors declared a $2 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 $388,000 credit balance (from net income) in the Income Summary account to Re- tained Earning 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. Check (2) Ending retained earnings, $504,500 Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started