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Kohler Corporation reports the following components of stockholders’ equity on December 31, 2016: Common stock—$15 par...
Kohler Corporation reports the following components of stockholders’ equity on December 31, 2016: Common stock—$15 par value, 100,000 shares authorized, 40,000 shares issued and outstanding $ 600,000 Paid-in capital in excess of par value, common stock 60,000 Retained earnings 400,000 Total stockholders' equity $ 1,060,000 In year 2017, the following transactions affected its stockholders’ equity accounts. Jan. 1 Purchased 5,500 shares of its own stock at $20 cash per share. Jan. 5 Directors declared a $4 per share cash dividend payable on February 28 to the February 5 stockholders of record. Feb. 28 Paid the dividend declared on January 5. July 6 Sold 2,063 of its treasury shares at $24 cash per share. Aug. 22 Sold 3,437 of its treasury shares at $17 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. 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.
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Expert Solution
| Date | General Journal | Debit | Credit |
| 01-Jan | Treasury stock, Common (5500*20) | 110,000 | |
| Cash | 110,000 | ||
| 05-Jan | Retained earnings (34500*4) | 138,000 | |
| Common dividend payable | 138,000 | ||
| 28-Feb | Common dividend payable | 138,000 | |
| Cash | 138,000 | ||
| 06-Jul | Cash (2063*24) | 49,512 | |
| Treasury stock, Common (2063*20) |
41,260 | ||
| Paid-in capital, Treasury stock | 8,252 | ||
| 22-Aug | Cash | 58,429 | |
| Paid-in capital, Treasury stock | 8,252 | ||
| Retained earnings | 2,059 | ||
| Treasury stock, Common | 68,740 | ||
| 05-Sep | Retained earnings | 160,000 | |
| Common dividend payable | 160,000 | ||
| (40000-5500+2063+3437) | |||
| 28-Oct | Common dividend payable | 160,000 | |
| Cash | 160,000 | ||
| 31-Dec | Income summary | 408,000 | |
| Retained earnings | 408,000 |
| KOHLER
CORPORATION Statement of Retained Earnings For Year Ended December 31, 2017 |
|
| Retained earnings, Dec. 31, 2016 | 400000 |
| Add:Net Income | 408,000 |
| Less: Cash dividends declared | 298,000 |
| Less: Treasury stock reissuances | 2,059 |
| Retained earnings, Dec. 31, 2017 | 507,941 |
| KOHLER
CORPORATION Stockholders' Equity Section of the Balance Sheet December 31, 201 |
|
| Common stock - $10 par value 400,000 | |
| Paid-in capital in excess of par value, common stock | 60,000.00 |
| Retained earnings | 507,941 |
|
Explanation: Common stock ($10 par value, 100,000 shares authorized, 40,000 shares issued and outstanding) = $400,000 |
|
ekkarill92 answered 8 months agoRelated Solutions
Kohler Corporation reports the following components of stockholders’ equity on December 31, 2016: Common stock—$15 par...
Kohler Corporation reports the following components of
stockholders’ equity on December 31, 2016:
Common stock—$15 par value, 100,000 shares authorized,
50,000 shares issued and outstanding
$
750,000
Paid-in capital in excess of par value, common stock
70,000
Retained earnings
370,000
Total stockholders' equity
$
1,190,000
In year 2017, the following transactions affected its stockholders’
equity accounts.
Jan.
1
Purchased 5,500 shares of its own stock at $20 cash per
share.
Jan.
5
Directors declared a $6 per share cash dividend...
Kohler Corporation reports the following components of stockholders’ equity on December 31, 2016: Common stock—$15 par...
Kohler Corporation reports the following components of
stockholders’ equity on December 31, 2016: Common stock—$15 par
value, 100,000 shares authorized, 45,000 shares issued and
outstanding $ 675,000 Paid-in capital in excess of par value,
common stock 70,000 Retained earnings 430,000 Total stockholders'
equity $ 1,175,000 In year 2017, 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 $4 per share cash dividend...
Kohler Corporation reports the following components of stockholders’ equity on December 31, 2016: Common stock—$15 par...
Kohler Corporation reports the following components of
stockholders’ equity on December 31, 2016:
Common stock—$15
par value, 100,000 shares authorized,
55,000 shares issued and outstanding
$
825,000
Paid-in capital
in excess of par value, common stock
60,000
Retained
earnings
460,000
Total
stockholders' equity
$
1,345,000
In year 2017, the following transactions affected its stockholders’
equity accounts.
Jan.
1
Purchased 6,000
shares of its own stock at $20 cash per share.
Jan.
5
Directors declared
a $4 per share cash dividend...
Kohler Corporation reports the following components of stockholders’ equity on December 31, 2016: Common stock—$15 par...
Kohler Corporation reports the following components of
stockholders’ equity on December 31, 2016:
Common stock—$15 par value, 100,000 shares authorized,
60,000 shares issued and outstanding
$
900,000
Paid-in capital in excess of par value, common stock
70,000
Retained earnings
430,000
Total stockholders' equity
$
1,400,000
In year 2017, 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 $4 per share cash dividend...
Kohler Corporation reports the following components of stockholders’ equity on December 31, 2016: Common stock—$15 par...
Kohler Corporation reports the following components of
stockholders’ equity on December 31, 2016:
Common stock—$15 par value, 100,000 shares authorized, 45,000
shares issued and outstanding $ 675,000 Paid-in capital in excess
of par value, common stock 80,000 Retained earnings 400,000 Total
stockholders' equity $ 1,155,000
In year 2017, the following transactions affected its
stockholders’ equity accounts.
Jan. 1 Purchased 4,500 shares of its own stock at $15 cash per
share.
Jan. 5 Directors declared a $4 per share cash dividend...
Kohler Corporation reports the following components of stockholders’ equity on December 31, 2016: Common stock—$15 par...
Kohler Corporation reports the following components of
stockholders’ equity on December 31, 2016: Common stock—$15 par
value, 100,000 shares authorized, 50,000 shares issued and
outstanding $ 750,000 Paid-in capital in excess of par value,
common stock 60,000 Retained earnings 400,000 Total stockholders'
equity $ 1,210,000 In year 2017, the following transactions
affected its stockholders’ equity accounts. Jan. 1 Purchased 6,000
shares of its own stock at $15 cash per share. Jan. 5 Directors
declared a $4 per share cash dividend...
Kohler Corporation reports the following components of stockholders’ equity on December 31, 2016: Common stock—$20 par...
Kohler Corporation reports the following components of
stockholders’ equity on December 31, 2016:
Common stock—$20 par value, 100,000 shares authorized,
45,000 shares issued and outstanding
$
900,000
Paid-in capital in excess of par value, common stock
70,000
Retained earnings
460,000
Total stockholders' equity
$
1,430,000
In year 2017, the following transactions affected its stockholders’
equity accounts.
Jan.
1
Purchased 4,000 shares of its own stock at $25 cash per
share.
Jan.
5
Directors declared a $4 per share cash dividend...
Kohler Corporation reports the following components of stockholders’ equity on December 31, 2016: Common stock—$25 par...
Kohler Corporation reports the following components of
stockholders’ equity on December 31, 2016:
Common stock—$25 par value,
100,000 shares authorized,
50,000 shares issued and outstanding
$
1,250,000
Paid-in capital in excess of par
value, common stock
60,000
Retained earnings
430,000
Total stockholders' equity
$
1,740,000
In year 2017, the following transactions affected its stockholders’
equity accounts.
Jan.
1
Purchased 5,000 shares of its own
stock at $15 cash per share.
Jan.
5
Directors declared a $6 per share
cash dividend...
Kohler Corporation reports the following components of stockholders’ equity on December 31, 2016: Common stock—$20 par...
Kohler Corporation reports the following components of
stockholders’ equity on December 31, 2016:
Common stock—$20 par value, 100,000 shares authorized,
55,000 shares issued and outstanding
$
1,100,000
Paid-in capital in excess of par value, common stock
70,000
Retained earnings
430,000
Total stockholders' equity
$
1,600,000
In year 2017, the following transactions affected its stockholders’
equity accounts.
Jan.
1
Purchased 4,500 shares of its own stock at $20 cash per
share.
Jan.
5
Directors declared a $2 per share cash dividend...
Kohler Corporation reports the following components of stockholders’ equity on December 31, 2016: Common stock—$10 par...
Kohler Corporation reports the following components of
stockholders’ equity on December 31, 2016:
Common stock—$10 par value, 100,000 shares authorized,
55,000 shares issued and outstanding
$550,000
Paid-in capital in excess of par value, common stock
70,000
Retained earnings
460,000
Total stockholders' equity
$1,080,000
In year 2017, the following transactions affected its stockholders’
equity accounts.
Jan.
1
Purchased 4,000 shares of its own stock at $25 cash per
share.
Jan.
5
Directors declared a $2 per share cash dividend payable on...
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