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

Question

Kohler Corporation reports the following components of stockholders' equity on December 31, 2015 Common stock-$10 par value, 100,000 shares authorized, 40,000 shares issued and outstanding 400,000 60,000 270,000 Paid-in capital in excess of par value, common stock Retained earnings Total stockholders' equity 730,000 In year 2016, 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 $2 per share cash dividend payable on Feb. 28 to the Feb. 5 stockholders of record Feb. 28 Paid the dividend declared on January 5 Jul. 6 Sold 1,500 of its treasury shares at $24 cash per share Aug. 22 Sold 2,500 of its treasury shares at $17 cash per share Sep. 5 Directors declared a $2 per share cash dividend payable on October 28 to the September 25 stockholders of record Oct. 28 Pa the dividend declared on September5 Dec. 31 Closed the $388,000 credit balance (from net income) in the Income Summary account to Retained Earnings General Journal General Ledger Statement of Stockholders Impact orn Equity Requirement Trial Balance RE Equity Prepare the stockholders' equity section of Kohler Corporation's balance sheet as of December 31, 2016 KOHLER CORPORATION Stockholders' Equity Section of the Balance Sheet December 31, 2016 Total contributed capital Total stockholders' equity K Statement of RE Impact on Equity

Explanation / Answer

Solution:

Kohler Corporation - Statement of Retained Earnings on 31.12.2015 Particulars Amount Opening balance $270,000.00 Add: Income for 2015 $388,000.00 Less: Dividend Paid (36000*$2 + 40000*$2) $152,000.00 Less: Loss on sale of treasury stock $1,500.00 Ending balance of Retained Earnings $504,500.00

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