Journal entries, and statement of retained earnings
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Kohler Corporation reports the following components of stockholders' equity on December 31, 2008.
Common stock-$20 par value, 200,000 shares authorized,
50,000 shares issued and outstanding $ 500,000
Paid-in capital in excess of par value, common stock 70,000
Retained earnings 260,000
$ 830,000
In year 2009, the following transactions affected its stockholders' equity accounts:
Jan. 1 Purchased 3,000 shares of its own stock at $30 cash per share.
Jan. 5 Directors declared a $3 per share cash dividend payable on Feb 28 to the Feb 5 stockholders of record.
Feb. 28 Paid the dividend declared on January 5.
July 6 Sold 1,600 of its treasury shares at $26 cash per share.
Aug. 22 Sold 1,400 of its treasury shares at $19 cash per share.
Sep. 5 Directors declared a$3 per share cash dividend payable on October 28 to the September 25 stockholders of record.
Oct. 28 Paid the dividend declared on September 5.
Dec. 31 Closed the $366,000 credit balance (from net income) in the Income Summary account to Retained Earnings.
Requirement 1:
Prepare journal entries to record these transactions for 2009.
Date General Journal Debit Credit
Jan 1 _____ _____
_______ _____
Jan 5 _______ _____
______ _____
Feb 28 _______ ______
_______ ______
July 6 _______ ______
_______ _____
_______ ______
Aug 22 ______ _______
______ ________
______ _______
_______ ______
Sept 5 _______ _______
______ _______
Oct 28 ________ _______
_______ ________
Dec 31 _______ ________
_______ ________
Requirement 2:
Prepare a statement of retained earnings for the year ended December 31, 2009.
KOHLER CORPORATION
Statement of Retained Earnings
For Year Ended December 31, 2009
_______ $ ______
_______: _________ ______
______
_______: _________ ______
_________ _______
_______ _______
Requirement 3:
Prepare the stockholders' equity section of the company's balance sheet as of December 31, 2009
KOHLER CORPORATION
Stockholders' Equity Section of the Balance Sheet
December 31, 2009
Common stock-$20 pare value, 100,000 share authorized, 50,000 shares issued and outstanding $ ________________
Paid-in capital in excess of pare value, common stock ________________
Retained Earnings _________________
Total stockholders' equity $ _________________
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Solution Summary
The solution explains the journal entries for the given equity transactions and how to prepare a statement of retained earnings.
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