4 01:29:32 Kohler Corporation reports the following components of stockholders' equity at December 31 of the...

 

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4 01:29:32 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, 55,000 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 January 5 February 28 $ 550,000 70,000 460,000 $ 1,080,000 Purchased 5,000 shares of its own stock at $25 cash per share. Directors declared a $6 per share cash dividend payable on February 28 to the February 5 stockholders of record. Paid the dividend declared on January 5. July 6 August 22 September 5 October 28 December 31 Closed the $388,000 credit balance (from net income) in the Income Summary account to Retained Earnings. 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. Sold 2,500 of its treasury shares at $29 cash per share. Sold 2,500 of its treasury shares at $21 cash per share. Directors declared a $6 per share cash dividend payable on October 28 to the September 25 stockholders of record. Paid the dividend declared on September 5. 4 01:29:32 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, 55,000 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 January 5 February 28 $ 550,000 70,000 460,000 $ 1,080,000 Purchased 5,000 shares of its own stock at $25 cash per share. Directors declared a $6 per share cash dividend payable on February 28 to the February 5 stockholders of record. Paid the dividend declared on January 5. July 6 August 22 September 5 October 28 December 31 Closed the $388,000 credit balance (from net income) in the Income Summary account to Retained Earnings. 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. Sold 2,500 of its treasury shares at $29 cash per share. Sold 2,500 of its treasury shares at $21 cash per share. Directors declared a $6 per share cash dividend payable on October 28 to the September 25 stockholders of record. Paid the dividend declared on September 5.

Answer rating: 100% (QA)

1 Journal Entries January 2 Purchase of Treasury Stock Debit Treasury Stock 125000 5000 shares 25 per share Credit Cash 125000 January 5 Declaration and Payment of Dividend Debit Dividends Payable 330... View the full answer