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(Solved): Kohler Corporation reports the following components of stockholders equity at December 31 of the& ...



Kohler Corporation reports the following components of stockholders’ equity at December 31 of the prior year.
 

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

 
During the current year, the following transactions affected its stockholders’ equity accounts.
 

January 2 Purchased 5,000 shares of its own stock at $15 cash per share.
January 5 Directors declared a $6 per share cash dividend payable on February 28 to the February 5 stockholders of record.
February 28 Paid the dividend declared on January 5.
July 6 Sold 2,500 of its treasury shares at $19 cash per share.
August 22 Sold 2,500 of its treasury shares at $11 cash per share.
September 5 Directors declared a $6 per share cash dividend payable on October 28 to the September 25 stockholders of record.
October 28 Paid the dividend declared on September 5.
December 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.
2. Prepare a statement of retained earnings for the current year ended December 31.
3. Prepare the stockholders’ equity section of the balance sheet as of December 31 of the current year.

Required 1 Required 2 Required 3
Prepare journal entries to record each of these transactions.
No
1
2
3
4
5
6
7
8
Date
JanuarRequired 1 Required 2 Required 3
Prepare a statement of retained earnings for the current year ended December 31. (Amounts toRequired 1 Required 2 Required 3
Prepare the stockholders equity section of the balance sheet as of December 31 of the curre

Please help with Red Errors! Thank you.

Required 1 Required 2 Required 3 Prepare journal entries to record each of these transactions. No 1 2 3 4 5 6 7 8 Date January 02 January 05 February 28 July 06 August 22 September 05 October 28 December 31 Treasury stock, Common Cash Retained earnings Common dividend payable Common dividend payable Cash Cash General Journal Treasury stock, Common Paid-In capital, Treasury stock Cash Paid-In capital, Treasury stock Treasury stock, Common Retained earnings Common dividend payable Common dividend payable Cash Income summary Retained earnings Required 1 Required 2 > Debit 75,000 240,000 240,000 47,500 27,500 450,000 75,000 388,000 Credit 75,000 240,000 240,000 27,500 27,500 450,000 75,000 388,000 Required 1 Required 2 Required 3 Prepare a statement of retained earnings for the current year ended December 31. (Amounts to be deducted should be indicated by a minus sign.) KOHLER CORPORATION Statement of Retained Earnings For Current Year Ended December 31 S Retained earnings, December 31, prior year Add: Net income Less: Cash dividends declared Retained earnings, December 31, current year 400,000 388,000 (555,000) $ 233,000 < Required 1 Required 3 > Required 1 Required 2 Required 3 Prepare the stockholders' equity section of the balance sheet as of December 31 of the current year. KOHLER CORPORATION Stockholders' Equity Section of the Balance Sheet December 31 Common stock - $15 par value Paid-in capital in excess of par value, common stock Total contributed capital Retained earnings Total stockholders' equity $ 600,000 80,000 680,000 233,000 $ 913,000 < Required 2 Required 3 >


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