2. Kohler Corporation reports the following components of stockholders’ equity on December 31, 2016: Common stock—$15 par...

3.7 Ratings (384 Votes)

1
Date	General Journal	Debit	Credit
1-Jan	Treasury stock, Common	82,500		=5500*15
	Cash		82,500

5-Jan	Retained earnings	158,000		=(45000-5500)*4
	Common dividend payable		158,000

28-Feb	Common dividend payable	158,000
	Cash		158,000

6-Jul	Cash	39,197		=2063*19
	Treasury stock, Common		30,945	=2063*15
	Paid-in capital, Treasury stock		8,252

22-Aug	Cash	41,244		=3437*12
	Paid-in capital, Treasury stock	8,252
	Retained earnings	2,059
	Treasury stock, Common		51,555	=3437*15

5-Sep	Retained earnings	180,000		=45000*4
	Common dividend payable		180,000

28-Oct	Common dividend payable	180,000
	Cash		180,000

31-Dec	Income summary	428,000
	Retained earnings		428,000

2
	KOHLER CORPORATION
	Statement of Retained Earnings
	For Year Ended December 31, 2017
	Retained earnings, Dec. 31, 2016	430,000
	Add: Net income	428,000
		858,000
	Less: Cash dividends declared	(338,000)
	Less: Treasury stock reissuances	(2,059)
	Retained earnings, Dec. 31, 2017	517,941

3
	KOHLER CORPORATION
	Stockholders' Equity Section of the Balance Sheet
	December 31, 2017
	Common stock - $15 par value	675,000
	Paid-in capital in excess of par value, common stock	60,000
	Total contributed capital	735,000
	Retained earnings	517,941
	Total stockholders' equity	1,252,941

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Common stock—$15 par value, 100,000 sharesauthorized, 45,000 shares issued and outstanding	$675,000
Paid-in capital in excess of par value, commonstock	60,000
Retained earnings	430,000
Total stockholders' equity	$1,165,000

Jan.	1	Purchased 5,500 shares of its own stock at $15 cash pershare.
Jan.	5	Directors declared a $4 per share cash dividend payable onFebruary 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 $19 cash per share.
Aug.	22	Sold 3,437 of its treasury shares at $12 cash per share.
Sept.	5	Directors declared a $4 per share cash dividend payable onOctober 28 to the September 25 stockholders of record.
Oct.	28	Paid the dividend declared on September 5.
Dec.	31	Closed the $428,000 credit balance (from net income) in theIncome Summary account to Retained Earnings.

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