Kohler Corporation reports the following components of stockholders equity on De

Question

Kohler Corporation reports the following components of stockholders equity on December 31, 2016: Common stock-$28 par value, 18e,eee shares authorized, s5,e00 shares issued and outstanding Retained earnings Total stockholders' equity $1,100,000 80,900 400,006 $1,580,000 In year 2017, 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 $4 per share cash dividend payable on February 28 to the February 5 stockholders of record. Feb. 28 Paid the dividend declared on 3anuary 5 Duly 6 Sold 1,508 of its treasury shares at $24 cash per share. Aug. 22 Sold 2,508 of its treasury shares at $17 cash per share. Sept 5 Directors declared a S4 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 $488,e00 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 Complete this question by entering your answers in the tabs below. 1Required 2 Required 3

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1 Journal Entries: Date Account Debit Credit Working Jan 1 Treasury Stock-Common 80000 4000*20 Cash 80000 Jan 5 Retained Earning 204000 (55000 Share Opening Balance-Purchased 4000)*4 per share Common Stock Dividend 204000 Feb 28 Common Stock Dividend 204000 Cash 204000 July 6 Cash 36000 1500*24 Treasury Stock-Common 30000 1500*20 Paid in capital-Common 6000 1500*(24-20) Aug 22 Cash 42500 2500*17 Paid in capital-Common 6000 Maximum amount lying in Paid in capital from Jul 6 Entry Retained Earning 1500 Balance Treasury Stock-Common 50000 Sep 5 Retained Earning 220000 55000*4 (Treasury Stock is nil 4000-sold 1500-Sold 2500) Common Stock Dividend 220000 Oct 28 Common Stock Dividend 220000 Cash 220000 Dec 31 Income Summary 408000 Retained Earning 408000

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