How do I determine what the cash dividends delcared is? Kohler Corporation repor

Question

How do I determine what the cash dividends delcared is?

Kohler Corporation reports the following components of stockholders' equity on December 31, 2015 Common stock-$25 par value, 100,000 shares authorized, 40,000 shares issued and outstanding Paid-in capital in excess of par value, common stock Retained earnings $1,000,000 70,000 460,000 Total stockholders' equity $1,530,000 In year 2016, the following transactions affected its stockholders' equity accounts. Purchased 4,500 shares of its own stock at $20 cash per share Directors declared a $6 per share cash dividend payable on Feb. 28 to the Feb. 5 stockholders of record. Paid the dividend declared on January Sold 1,688 of its treasury shares at $24 cash per share Sold 2,812 of its treasury shares at $17 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 Closed the $388,000 credit balance (from net income) in the Income Summary account to Retained Earnings. Jan. Jan. 1 5 5. Feb. 28 July 6 Aug. 22 Sept. 5 Oct. 28 Dec. 31

Explanation / Answer

Jan 1 Purchased 4,500 shares of its own stock at $20 cash per share.
Dr Common Treasury Stock 90,000
Cr Cash 90,000

Jan 5 Directors declared a $6 per share cash dividend payable on Feb. 28 to the Feb. 5 stockholders of record.
Dr Cash Dividends 2,13,000

Cr Dividends Payable 2,13,000

Feb 28 Paid the dividend declared on Jan 5.
Dr Dividends Payable 2,13,000
Cr Cash 2,13,000

July 6 Sold 1,688 of its treasury shares at $24 cash per share.
Dr Cash 40,512
Dr Additional Paid-In Capital 1,688
Cr Common Treasury Stock 42,200

Aug 22 Sold 2,812 of its treasury shares at $17 cash per share
Dr Cash 47,804
Dr Additional Paid-In Capital 22,496
Cr Common Treasury Stock 70,300

Sept. 5 Directors declared a $6 per share cash dividend payable on Oct 28 to the Sept. 25 stockholders of record.
Dr Cash Dividends 2,40,000
Cr Dividends Payable2,40,000

Oct 28 Paid the dividend declared on Sept 5
Dr Dividends Payable 2,40,000
Cr Cash 2,40,000

Dec 31 Closed the $388,000 credit balance (from net income) in the Income Summary account to Retained Earnings.
Dr Income Summary 388,000
Cr Retained Earnings 388,000

2) prepare a statement of retained earnings for the year ended Dec 31, 2016

Balance Jan. 1, 2016. . . . . . . . . . . . . . . . . . . . . .4,60,000
Net Income . . . . . . . . . . . . . . . . . . . . . . . . . . . . .388,000
..Less: Dividends. . . . . . . . . . . . . . . . . . . . . . . . . 4,53,000
Balance Dec. 31, 2016. . . . . . . . . . . . . . . . . . . . .3,95,000

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