accounting Kohler Corporation reports the following components of stockholders' equity at December 31, 2019.Common stock-$15 par value, 100,000 shares authorized, 45,000shares issued and outstandingPaid-in capital in excess of par value, common stockRetained earningsTotal stockholders' equity$ 675,00060,000460,000$ 1,195,000During 2020, the following transactions affected its stockholders' equity accounts.January 2 Purchased 4,000 shares of its own stock at $20 cash per share..January 5 Directors declared a $4 per share cash dividend payable on February 28 to the February 5 stockholders ofrecord.February 28 Paid the dividend declared on January 5.treasury shares at $24 cash per share.August 22 Sold 2,500 of its treasury shares at $17 cash per share.July 6 Sold 1,500 of itsSeptember 5 Directors declared a $4 per share cash dividend payable on October 28 to the September 25 stockholders ofrecord.October 28 Paid the dividend declared on September 5.December 31 Closed the $408,000 credit balance (from net income) in the Income Summary acco 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, 2020.3. Prepare the stockholders' equity section of the company's balance sheet as of December 31, 2020.

The treasury stock includes the own shares of the company repurchased from the shareholders. The…

Kohler Corporation reports the following components of stockholders' equity at December 31, 2019. Common stock-$15 par value, 100,000 shares authorized, 45,000 shares issued and outstanding Paid-in capital in excess of par value, common stock Retained earnings Total stockholders' equity $ 675,000 60,000 460,000 $ 1,195,000 During 2020, the following transactions affected its stockholders' equity accounts. January 2 Purchased 4,000 shares of its own stock at $20 cash per share. January 5 Directors declared a $4 per share cash dividend payable on February 28 to the February 5 stockholders of record. February 28 Paid the dividend declared on January 5. July 6 Sold 1,500 of its treasury shares at $24 cash per share. August 22 Sold 2,500 of its treasury shares at $17 cash per share. September 5 Directors declared a $4 per share cash dividend payable on October 28 to the September 25 stockholders record. October 28 Paid the dividend declared on September 5. December 31 Closed the $488,000 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, 2020. 3. Prepare the stockholders' equity section of the company's balance sheet as of December 31, 2020.

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter10: Stockholder's Equity

Section: Chapter Questions

Problem 84PSB: Statement of Stockholders' Equity At the end of 2019, Stanley Utilities Inc. had the following...