60.1K
Verified Solution
Link Copied!
ASSIGNMENT
Kohler Corporation reports the following components of stockholders equity on December 31, 2015
| |
| Common stock$20 par value, 100,000 shares authorized, 50,000 shares issued and outstanding | $ | 1,000,000 |
| Paid-in capital in excess of par value, common stock | | 70,000 |
| Retained earnings | | 400,000 |
| Total stockholders equity | $ | 1,470,000 |
| |
In year 2016, the following transactions affected its stockholders equity accounts.
| Jan. | | 1 | | Purchased 5,000 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. |
| July | | 6 | | Sold 1,875 of its treasury shares at $24 cash per share. |
| Aug. | | 22 | | Sold 3,125 of its treasury shares at $17 cash per share. |
| Sept. | | 5 | | Directors declared a $2 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. |
Required:
1. Prepare journal entries to record each of these transactions for 2016.
2. Prepare a statement of retained earnings for the year ended December 31, 2016. (Amounts to be deducted should be indicated by a minus sign.)
3. Prepare the stockholders' equity section of the companys balance sheet as of December 31, 2016.
Answer & Explanation
Solved by verified expert
