Jan Jan 2 Purchased 4,000 shares of its own stock at $20 cash per share. Directors declared a $2 per share cash dividend payable on February 28 to the February 5 stockholders of record Paid the...


Kohler Corporation reports the following components of stockholders' equity at December 31,2018.


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



During 2019, the Following transactions affected its stockholders equity accounts.




Jan<br>Jan<br>2<br>Purchased 4,000 shares of its own stock at $20 cash per share.<br>Directors declared a $2 per share cash dividend payable on February 28 to the February 5<br>stockholders of record<br>Paid the dividend declared on January 5<br>Sold 1,500 of its treasury shares at $24 cash per share<br>Sold 2,500 of its treasury shares at $17 cash per share<br>5<br>Feb. 28<br>July 6<br>Aug. 22<br>Sep. 5 Directors declared a $2 per share cash dividend payable<br>on October 28 to the September 25<br>stockholders of record<br>Paid the dividend declared on September 5<br>Closed the $388,000 credit balance (from net income) in the Income Summary account to Re-<br>tained Earnings.<br>Oct. 28<br>Dec. 31<br>Required<br>1. Prepare journal entries to record each of these transactions<br>2. Prepare a statement of retained earnings for the year ended December 31,<br>2019<br>Check (2) Ending retained earnings, $504,500<br>3. Prepare the stockholders' equity section of the company's balance sheet as of<br>December 31, 2019.<br>Page 493<br>

Extracted text: Jan Jan 2 Purchased 4,000 shares of its own stock at $20 cash per share. Directors declared a $2 per share cash dividend payable on February 28 to the February 5 stockholders of record Paid the dividend declared on January 5 Sold 1,500 of its treasury shares at $24 cash per share Sold 2,500 of its treasury shares at $17 cash per share 5 Feb. 28 July 6 Aug. 22 Sep. 5 Directors declared a $2 per share cash dividend payable on October 28 to the September 25 stockholders of record Paid the dividend declared on September 5 Closed the $388,000 credit balance (from net income) in the Income Summary account to Re- tained Earnings. Oct. 28 Dec. 31 Required 1. Prepare journal entries to record each of these transactions 2. Prepare a statement of retained earnings for the year ended December 31, 2019 Check (2) Ending retained earnings, $504,500 3. Prepare the stockholders' equity section of the company's balance sheet as of December 31, 2019. Page 493

Jun 03, 2022
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