Kohler Corporation reports the following components of stockholders\' equity on

Question

Kohler Corporation reports the following components of stockholders' equity on December 31, 2016: Common stock-$20 par value, 100,000 shares authorized, 50,000 shares issued and outstanding Paid-in capital in excess of par value, common stock Retained earnings Total stockholders' equity $1,000,000 60,000 400,000 $1,460,000 In year 2017, the following transactions affected its stockholders' equity accounts. Jan. 1 Purchased 5,500 shares of its own stock at $25 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 2,063 of its treasury shares at $29 cash per share. Aug. 22 Sold 3,437 of its treasury shares at $22 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 $408,000 credit balance (from net income) in the Income Summary account to Retained Earnings Required: 1. Prepare journal entries to record each of these transactions for 2017 2. Prepare a statement of retained earnings for the year ended December 31, 2017 3. Prepare the stockholders' equity section of the company's balance sheet as of December 31, 2017 Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3

Explanation / Answer

. Joutnal Entries Date Account Tittle Debit Credit 06-Jul Cash (2063 X $29) $59,827.00 Treasury Stock, Common (2063X$25) $51,575.00 Paid in Capital Treasury Stock (2063X$4) $8,252.00 To Record sale of Treasury Stock 22-Aug Cash (3437X22) $75,614.00 Paid in Capital Treasury Stock $8,252.00 Retained Earning $2,059.00 Treasury Stock, Common (3437X 25) $85,925.00 To Record sale of Treasury Stock 05-Sep Retained Earning $100,000.00 Common Dividend Payable $100,000.00 To Record Dividend Declared 28-Oct Common Dividend Payable Cash (50000-5500+2063+3437)X2 $100,000.00 To Record Dividend Paid $100,000.00 31-Dec Income Summary $4,080,000.00 Retained Earning $408,000.00 To Record trf of Income to Retain Earning 2. Statement Showing Reatined Earning for the year Ended 31 Dec 2017 Beginning Balance $400,000.00 Add Net Income for the year $408,000.00 Less Dividend decalared on 5 Jan $100,000.00 Less Dividend decalared on 5 Sep $100,000.00 Less: Treasure Stock Loss W/off $2,059.00 Net Balance as on 31 Dec 2017 $605,941.00 3. Statement Showing Stockholder's Equity Section as of 31 Dec 2017 Common Stock - at Par $1,000,000.00 Paid in Capital in excess of Par- Common Stock $60,000.00 Treasue Stock-Par Paid in Capital in excess of Par- Treasury Stock Retained Earning balance as on 31 dec 2017 $605,941.00 Total Stockholder's Equity as on 31 Dec 2017 $1,665,941.00

Related Questions

Navigate

• Browse (All)
• Browse K
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.