Q 1. Check my wo Kohler Corporation reports the following components of stockhol
ID: 2533853 • Letter: Q
Question
Q 1.
Check my wo Kohler Corporation reports the following components of stockholders' equity on December 31,2016: Common stock-$25 par value, 100,000 shares authorized, 55,000 shares issued and outstanding Paid-in capital in excess of par value, common stock Retained earnings Total stockholders' equity $1,375,e00 70,800 370,80e $1,815,000 ok In year 2017, the following transactions affected its stockholders' equity accounts. 1 Purchased 4,500 shares of its own stock at $25 cash per share. 5 Directors declared a $4 per share cash dividend payable on February 28 to the February 5 stockholders of record. Dan. Jan. Feb. 28 Paid the dividend declared on January 5 uly 6 Sold 1,688 of its treasury shares at $29 cash per share Aug. 22 Sold 2,812 of its treasury shares at $22 cash per share Sept. 5 Directors declared a $4 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 $408,000 credit balance (from net income) in the Income Summary account to Retained Earnings. ces 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 (Prev 1017 ??? Ne >Explanation / Answer
Kohler Corporation Given Common Shares @ $25 par value,50000 shares authorized, 55,000 shares issued and outstanding $ 1,375,000.00 Paid in capital excess of par value common stock $ 70,000.00 Retained Earnings $ 370,000.00 Total Stockholder's Equity $ 1,815,000.00 Journal Entries Date Particular Amt(Dr) Amt (Cr) 1-Jan Treasury Stock(4500*25) $ 112,500.00 To Cash $ 112,500.00 (Being amount of purchased of 4500 own stock) 5-Jan Retained Earnings To Common Stock dividend Payable $ 202,000.00 (Being amount of dividend declared on (55000-4500) @$4 $ 202,000.00 28-Feb Common Stock dividend Payable $ 202,000.00 To Cash $ 202,000.00 (Being amount of Paid dividend declared on 5th jan) 6-Jul Cash=(1688*$29) $ 48,952.00 To Treasury Stock=(1688*$25) $ 42,200.00 To Paid in Capital excess of par-Treasury Stock(1688*$4) $ 6,752.00 (Being amount of sale of 1688 Treasury stock @$29 per share) 27-Aug Cash $ 61,864.00 Retained Earnings=(2812*(25-22)-$6752) $ 1,684.00 Paid in Capital -treasury Stock $ 6,752.00 To Treasury Stock-common $ 70,300.00 (Being amount of sale of 2812 Treasury stock @$22 per share) 5-Sep Retained Earnings $ 220,000.00 To Common Stock dividend Payable $ 220,000.00 (Being amount of dividend declared on (55000-4500+1688+2812) shares @ $4 per share) 28-Oct Common Stock dividend Payable $ 220,000.00 To Cash $ 220,000.00 (Being amount of paid dividend declared on 5th sep) 31-Dec Income Summary $ 408,000.00 To Retained Earnings $ 408,000.00 (Being amount of closed the credit balance in income summary account to retained earnings) Kohler Corporation Statement of Retained Earnings For the year ended december 31st 2017 Beginning retained Earnings on Jan 1,2017 $ 370,000.00 Add: Net Income $ 408,000.00 Total $ 778,000.00 Less: Dividend declared $ (422,000.00) Les: Treasury stock reissuance $ (1,684.00) Retained Earnings on December 31st 2017 $ 354,316.00 Kohler Corporation Stockholder's Equity Section of Balance Sheet For the year ended december 31st 2017 Common Stock 55000 shares @ $25 per share $ 1,375,000.00 Paid in Capital excess of par common stock $ 70,000.00 Retained Earnings $ 354,316.00 Total Stock holder's Equity $ 1,799,316.00
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