Item2

1.66points

eBook

Print

Check my workCheck My Work button is now enabled5

Item 2

Item 2 1.66 points

Kohler Corporation reports the following components of stockholders equity at December 31, 2018.

Common stock$20 par value, 100,000 shares authorized, 40,000 shares issued and outstanding	$	800,000
Paid-in capital in excess of par value, common stock		70,000
Retained earnings		370,000
Total stockholders' equity	$	1,240,000

During 2019, the following transactions affected its stockholders equity accounts.

Jan.		2		Purchased 4,500 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 1,688 of its treasury shares at $24 cash per share.
Aug.		22		Sold 2,812 of its treasury shares at $17 cash per share.
Sept.		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 $368,000 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 year ended December 31, 2019. 3. Prepare the stockholders equity section of the companys balance sheet as of December 31, 2019.

Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare journal entries to record each of these transactions. View transaction list Journal entry worksheet 2 3 4 5 6 7 8 Record the purchase of 4,500 shares of its own common stock for $20 cash per share. Note: Enter debits before credits. General Journal Debit Credit Date Jan 02 Record entry Clear entry View general journal Required 1 Required 2 >