kohler corporation 13-HOMEWORK-p15 6 stock-$18 par value, 1ee,eee shares authori
ID: 2537648 • Letter: K
Question
kohler corporation 13-HOMEWORK-p15 6 stock-$18 par value, 1ee,eee shares authorized, 45,080 shares issued and outstanding Paid-in capital in excess of par value, common stock Retained earnings 458,0ee 78,080 Total stockholders' equity $928,00e In year 2017, the following transactions affected its stockholders' equity accounts. Jan. 1 Purchased 5, see shares of its own stock at $15 cash per share. 3an. 5 Directors declared a 54 per share cash dividend payable on February 28 to the February 5 stoc kholders of record. Feb. 28 Paid the dividend declared on January 5 July 6 Sold 2,963 of its treasury shares at $19 cash per share. Aug. 22 Sold 3,437 of its treasury shares at $12 cash per share. Sept. 5 Dfrectors declared a s4 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 $388,000 credit balance (from net income) in the Income Summary account to Retained Earnings. Required: 1. Prepare journal entries to record each of these transactions 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.Explanation / Answer
Answer
Stock
No. of share
Opening Common Stock
45000
(treasury stock)
-5500
Shares Available for Dividend on Jan 5
39500
Treasury Stock reissued
5500
Shares available for dividend on Oct 28
45000
Date
General Journal
Dr (in $)
Cr (in $)
Working
Jan-01
Treasury Stock
82500
[5500 x 15]
Cash
82500
Jan-05
Dividends
158000
[39500 shares x $4]
Dividends payable
158000
Feb-28
Dividends payable
158000
Cash
158000
Jul-06
Cash
39197
[2063 x $19]
Treasury Stock
30945
[2063 x $15]
Paid in capital in excess
8252
[2063 x $4]
Aug-22
Cash
41244
[3437 x $12]
Paid in capital in excess
10311
[3437 x $3]
Treasury Stock
51555
[3437 x $15]
Sep-05
Dividends
180000
[45000 shares x $4]
Dividends payable
180000
Oct-28
Dividends payable
180000
Cash
180000
Dec-31
Retained Earnings
388000
Income Summary
388000
Opening balance
$400000
Add: Net Income
$388000
Less: Dividends
on Feb 28
$158000
on Oct 28
$180000
Closing balance
450000
Working
Common Stock
Pain in capital in excess
Treasury Stock
Opening Balance
450000
70000
0
01-Jan
82500
Jul-06
8252
-30945
Aug-22
-10311
-51555
Closing Balance
$450000
$67941
0
Answer
Common Stock [45000 issued @$10 par]
$450,000
Paid in capital in excess of Par
$67,941
Retained earnings
$450,000
Total Stockholder's Equity
$967,941
Stock
No. of share
Opening Common Stock
45000
(treasury stock)
-5500
Shares Available for Dividend on Jan 5
39500
Treasury Stock reissued
5500
Shares available for dividend on Oct 28
45000
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