Kohler Corporation reports the following components of stockholders equity on De
ID: 2458463 • Letter: K
Question
Kohler Corporation reports the following components of stockholders equity on December 31, 2013:
Common Stock-$10 par value, 100,000 shares authorized, 40,000 shares issued
and outstanding………………………………………………………………………………………. $400,000
Paid-in capital in excess of par value, common stock……………………………………………. $60,000
Retained Earnings ………………………………………………………………………………………………… $270,000
Total stockholders’ equity ……………………………………………………………………………………. $730,000
In the year 2014, the following transactions affected its stockholders equity accounts.
Jan 1. 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 Feb. 28th to the Feb 5th 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
Aug 22. Sold 2,500 of its treasury shares at $17 cash per share
Sept 5. Directors declared a $2 per share cash dividend payable on October 28th to the September 25th 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 Retained Earnings.
Question:
Prepare the stockholders equity section of the company’s balance sheet as of December 31, 2014
Explanation / Answer
Statement of retained earnings:
Statement of Paid in capital in excess of par value Remarks 1-Jan Paid in capital in excess of par value, Common stock $60,000.00 6-Jul Minus: Additional paid in capital $4,500.00 1500 *(20 - 17) the differece in buy back price and the resale price is deducted from paid in capital in excess of par value, common stock 22-Aug Mius: Additional paid I capital for 2500 shares $7,500.00 2500*(20-17) the differece in buy back price and the resale price is deducted from paid in capital in excess of par value, common stock 31-Dec Balance of paid in capital in excess of par value, common stock $48,000.00Related Questions
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