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Problem 11-2A (Algo) Cash dividends, treasury stock, and statement of retained earnings LO C3, P2,...

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Accounting

image Problem 11-2A (Algo) Cash dividends, treasury stock, and statement of retained earnings LO C3, P2, P3 Kohler Corporation reports the following components of stockholders' equity at December 31, 2019. During 2020, the following transactions affected its stockholders' equity accounts. January 2 Purchased 5,500 shares of its own stock at $20 cash per share. January 5 Directors declared a $4 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 2,063 of its treasury shares at $24 cash per share. August 22 Sold 3,437 of its treasury shares at $17 cash per share. September 5 Directors declared a $4 per share cash dividend payable on 0ctober 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 year ended December 31, 2020. 3. Prepare the stockholders' equity section of the company's balance sheet as of December 31, 2020

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