Kohler Corporation reports the following components of stockholders’ equity at December 31 of the prior year.   Common stock—$15 par value, 100,000 shares authorized, 50,000 shares issued and outstanding $ 750,000 Paid-in capital in excess of par value, common stock 80,000 Retained earnings 430,000 Total stockholders' equity $ 1,260,000   During the current year, the following transactions affected its stockholders’ equity accounts.   January 2 Purchased 5,000 shares of its own stock at $20 cash per share. January 5 Directors declared a $6 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 2,500 of its treasury shares at $24 cash per share. August 22 Sold 2,500 of its treasury shares at $16 cash per share. September 5 Directors declared a $6 per share cash dividend payable on October 28 to the September 25 stockholders of record. October 28 Paid the dividend declared on September 5. December 31 Closed the $428,000 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 current year ended December 31. 3. Prepare the stockholders’ equity section of the balance sheet as of December 31 of the current year.   Required 1: 1) Record the purchase of 5,000 shares of its own common stock for $20 cash per share. 2) Record the declaration of a cash dividend of $6 per share. 3) Record the payment of the cash dividend. 4) Record the reissue of 2,500 shares of the treasury stock for $24 cash per share. 5) Record the reissue shares of the treasury stock for $16 cash per share. 6) Record the declaration of a cash dividend for $6 per share. 7) record the payment of the cash dividend.  8) Record the entry to close the $428,000 credit balance (from net income) in the Income Summary account to Retained Earnings.

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Chapter5: Completing The Accounting Cycle
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Problem 3EB: For each of the following accounts, identify whether it would be closed at year-end (yes or no) and...
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Kohler Corporation reports the following components of stockholders’ equity at December 31 of the prior year.
 

Common stock—$15 par value, 100,000 shares authorized, 50,000 shares issued and outstanding $ 750,000
Paid-in capital in excess of par value, common stock 80,000
Retained earnings 430,000
Total stockholders' equity $ 1,260,000

 
During the current year, the following transactions affected its stockholders’ equity accounts.
 

January 2 Purchased 5,000 shares of its own stock at $20 cash per share.
January 5 Directors declared a $6 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 2,500 of its treasury shares at $24 cash per share.
August 22 Sold 2,500 of its treasury shares at $16 cash per share.
September 5 Directors declared a $6 per share cash dividend payable on October 28 to the September 25 stockholders of record.
October 28 Paid the dividend declared on September 5.
December 31 Closed the $428,000 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 current year ended December 31.
3. Prepare the stockholders’ equity section of the balance sheet as of December 31 of the current year.

 

Required 1:

1) Record the purchase of 5,000 shares of its own common stock for $20 cash per share.

2) Record the declaration of a cash dividend of $6 per share.

3) Record the payment of the cash dividend.

4) Record the reissue of 2,500 shares of the treasury stock for $24 cash per share.

5) Record the reissue shares of the treasury stock for $16 cash per share.

6) Record the declaration of a cash dividend for $6 per share.

7) record the payment of the cash dividend. 

8) Record the entry to close the $428,000 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 current year ended December 31.
3. Prepare the stockholders' equity section of the balance sheet as of December 31 of the current year.
Complete this question by entering your answers in the tabs below.
Required 1
Required 2
Required 3
Prepare a statement of retained earnings for the current year ended December 31. (Amounts to be deducted should be
indicated by a minus sign.)
KOHLER CORPORATION
Statement of Retained Earnings
For Curent Year Ended December 31
Required 1
Required 3
>
1 of 1
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Transcribed Image Text:Required: 1. Prepare journal entries to record each of these transactions. 2. Prepare a statement of retained earnings for the current year ended December 31. 3. Prepare the stockholders' equity section of the balance sheet as of December 31 of the current year. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare a statement of retained earnings for the current year ended December 31. (Amounts to be deducted should be indicated by a minus sign.) KOHLER CORPORATION Statement of Retained Earnings For Curent Year Ended December 31 Required 1 Required 3 > 1 of 1 Next > Prev
Required:
1. Prepare journal entries to record each of these transactions.
2. Prepare a statement of retained earnings for the current year ended December 31.
3. Prepare the stockholders' equity section of the balance sheet as of December 31 of the current year.
Complete this question by entering your answers in the tabs below.
Required 1
Required 2
Required 3
Prepare the stockholders' equity section of the balance sheet as of December 31 of the current year.
KOHLER CORPORATION
Stockholders' Equity Section of the Balance Sheet
December 31
Total contributed capital
Total stockholders' equity
< Required 2
Required 3 >
1 of 1
Next >
Drev
Transcribed Image Text:Required: 1. Prepare journal entries to record each of these transactions. 2. Prepare a statement of retained earnings for the current year ended December 31. 3. Prepare the stockholders' equity section of the balance sheet as of December 31 of the current year. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare the stockholders' equity section of the balance sheet as of December 31 of the current year. KOHLER CORPORATION Stockholders' Equity Section of the Balance Sheet December 31 Total contributed capital Total stockholders' equity < Required 2 Required 3 > 1 of 1 Next > Drev
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