The following information applies to the questions displayed below Kohler Corpor
ID: 2595846 • Letter: T
Question
The following information applies to the questions displayed below Kohler Corporation reports the following components of stockholders' equity on December 31, 2015 Common stock-$10 par value. 100.000 shares authorized. 55000 shares issued and outstanding Paid-an capital in excess of par value, common stock Retained eamings Total stockholders equity s 550,000 70,000 370.000 $ 990000 in year 2016, the following transactions offected its stockholders equity accounts Purchased 5,000 shares of its own stock at $15 cash per share Jen 5 trectors declared-S6 per share Feb 28 Paid the dividend declared on January 5 July 6 Sold 1875 of its treasury shares at $19 cash per share. Aug 22 Soid 3125 of its treasury shares at $12 cash per share Sept. 5 Directors deciared a 56 per share cash dividend p Oct. 28 Paid the diidend declared on September 5 cash dividend payable on Feb. 28 to the Feb 5 stockhoiders of record - ayable on October 28 to the September 25 stockhoidess of recora 31 Closed the S408 ,000 credit balance from netincome in the Incon e Summary account to Retar ed Ear 22000 pointsExplanation / Answer
Answer a. Journal Entry Date Particulars Dr. Amt. Cr. Amt. 1-Jan Treasury Srock Dr. 75,000 5,000 Shares X $15 To Cash 75,000 5,000 Shares X $15 (record the purchase of treasury stock) 5-Jan Retained Earnings Dr. 300,000 50,000 shares X $6 To Cash Dividend Payable 300,000 50,000 shares X $6 (Record the dividend declared) 5-Feb No Entry 28-Feb Cash Dividend Payable Dr. 300,000 To Cash 300,000 (record the dividend paid) 6-Jul Cash Dr. 35,625 1,875 Shares X $19 To Treasury Stock 28,125 1,875 Shares X $15 To Paid-in Capital in Excess of Par - Treasury 7,500 1,875 Shares X $4 (record the sale of treasury stock) 22-Aug Cash Dr. 37,500 3,125 Shares X $12 Paid-in Capital in Excess of Par - Treasury Dr. 7,500 Retained Earnings Dr. 1,875 $46,875 - ($37,500 + $7,500) To Treasury Stock 46,875 3,125 Shares X $15 (record the sale of treasury stock) 5-Sep Retained Earnings Dr. 330,000 55,000 shares X $6 To Cash Dividend Payable 330,000 55,000 shares X $6 (Record the dividend declared) 28-Oct Cash Dividend Payable Dr. 330,000 To Cash 330,000 (record the dividend paid) 31-Dec Income Summary Dr. 408,000 To Retained Earnings 408,000 (record the closing entry of Income Statement) Answer b. Kohler Corporation Statement of Retained Earnings For the Year Ended Dec. 31, 2016 Beginning Balance - Jan 1, 2016 370,000 Add: Net Income 408,000 Balance 778,000 Less: Cash Dividend Declared: Jan-5 - $6 X 50,000 Shares (300,000) Sep-5 - $6 X 55,000 Shares (330,000) (630,000) Less: Treasury Stock (1,875) Ending Balance - Dec 31, 2016 146,125 Answer c. Kohler Corporation Balance Sheet (Partial) For the Year Ended Dec. 31, 2016 Stockholders Equity Paid in Capital Common Stock - $10 Par Value, 100,000 Shares Authorized, 55,000 Shares Issued & Outstanding 550,000 Paid in Capital in Excess of Par - Common 70,000 Total Paid in Capital 620,000 Retained Earnings 146,125 Total Stockholders' Equity 766,125
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.