Reference no: EM132946712
Problem - Kohler Corporation reports the following components of stockholders' equity at December 31, 2018.
Common stock-$10 par value, 100,000 shares authorized, 50,000 shares issued and outstanding $500,000
Paid-in capital in excess of par value, common stock 70,000
Retained earnings 370,000
Total stockholders' equity $940,000
During 2019, the following transactions affected its stockholders' equity accounts.
Jan. 2 Purchased 4,000 shares of its own stock at $15 cash per share.
Jan. 5 Directors declared a $4 per share cash dividend payable on February 23 to the February 5 stockholders of record.
Feb. 28 Paid the dividend declared on January 5.
July 6 Sold 1.500 of its treasury shares at $19 cash per share.
Aug. 22 Sold 2,500 of its treasury shares at $12 cash per share.
Sept. 5 Directors declared a $4 per share cash dividend payable on October 20 to the September 25 stockholders of record.
Oct. 23 Paid the dividend declared on September 5.
Dec. 31 Closed the $423,000 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, 2019.
3. Prepare the stockholders' equity section of the company's balance sheet as of December 31, 2019.