Kohler Corporation reports the following components of stockholders’ equity on December 31, 2016: Common stock—$20 par value,...

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Kohler Corporation reports the following components ofstockholders’ equity on December 31, 2016: Common stock—$20 parvalue, 100,000 shares authorized, 40,000 shares issued andoutstanding $ 800,000 Paid-in capital in excess of par value,common stock 60,000 Retained earnings 370,000 Total stockholders'equity $ 1,230,000 In year 2017, the following transactionsaffected its stockholders’ equity accounts. Jan. 1 Purchased 4,500shares of its own stock at $20 cash per share. Jan. 5 Directorsdeclared a $4 per share cash dividend payable on February 28 to theFebruary 5 stockholders of record. Feb. 28 Paid the dividenddeclared on January 5. July 6 Sold 1,688 of its treasury shares at$24 cash per share. Aug. 22 Sold 2,812 of its treasury shares at$17 cash per share. Sept. 5 Directors declared a $4 per share cashdividend payable on October 28 to the September 25 stockholders ofrecord. Oct. 28 Paid the dividend declared on September 5. Dec. 31Closed the $408,000 credit balance (from net income) in the IncomeSummary account to Retained Earnings. Required: 1. Prepare journalentries to record each of these transactions for 2017. 2. Prepare astatement of retained earnings for the year ended December 31,2017. 3. Prepare the stockholders' equity section of the company’sbalance sheet as of December 31, 2017. -Record the purchase of4,500 shares of its own common stock for $20 cash per share.-Record the declaration of a cash dividend of $4 per share. -Recordthe payment of the cash dividend. -Record the reissue of 1,688shares of the treasury stock for $24 cash per share. -Record thereissue of 2,812 shares of the treasury stock for $17 cash pershare. - Record the declaration of a cash dividend of $4 per share.-Record the payment of the cash dividend. -Record the entry toclose the income summary account having a credit balance of$408,000. -repare a statement of retained earnings for the yearended December 31, 2017. (Amounts to be deducted should beindicated by a minus sign.) -Prepare the stockholders' equitysection of the company’s balance sheet as of December 31, 2017.

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3.6 Ratings (662 Votes)

40000 shares issued and outstanding 20 80000000 Paid in capital excess of par 6000000 Retained Earnings 37000000 Total Stockholders equity 123000000 Kohler Corporation Date GeneralJournal Debit Credit 01Jan Tresury StockCommon 9000000 To Cash 9000000 Being amount of purchased of 4500 own stock 20 per share 05Jan Retained Earnings4000045004 14200000 See Answer

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Kohler Corporation reports the following components ofstockholders’ equity on December 31, 2016: Common stock—$20 parvalue, 100,000 shares authorized, 40,000 shares issued andoutstanding $ 800,000 Paid-in capital in excess of par value,common stock 60,000 Retained earnings 370,000 Total stockholders'equity $ 1,230,000 In year 2017, the following transactionsaffected its stockholders’ equity accounts. Jan. 1 Purchased 4,500shares of its own stock at $20 cash per share. Jan. 5 Directorsdeclared a $4 per share cash dividend payable on February 28 to theFebruary 5 stockholders of record. Feb. 28 Paid the dividenddeclared on January 5. July 6 Sold 1,688 of its treasury shares at$24 cash per share. Aug. 22 Sold 2,812 of its treasury shares at$17 cash per share. Sept. 5 Directors declared a $4 per share cashdividend payable on October 28 to the September 25 stockholders ofrecord. Oct. 28 Paid the dividend declared on September 5. Dec. 31Closed the $408,000 credit balance (from net income) in the IncomeSummary account to Retained Earnings. Required: 1. Prepare journalentries to record each of these transactions for 2017. 2. Prepare astatement of retained earnings for the year ended December 31,2017. 3. Prepare the stockholders' equity section of the company’sbalance sheet as of December 31, 2017. -Record the purchase of4,500 shares of its own common stock for $20 cash per share.-Record the declaration of a cash dividend of $4 per share. -Recordthe payment of the cash dividend. -Record the reissue of 1,688shares of the treasury stock for $24 cash per share. -Record thereissue of 2,812 shares of the treasury stock for $17 cash pershare. - Record the declaration of a cash dividend of $4 per share.-Record the payment of the cash dividend. -Record the entry toclose the income summary account having a credit balance of$408,000. -repare a statement of retained earnings for the yearended December 31, 2017. (Amounts to be deducted should beindicated by a minus sign.) -Prepare the stockholders' equitysection of the company’s balance sheet as of December 31, 2017.