Question

Kohler Corporation reports the following components of stockholders' equity on December 31, 2016 Common stock-$20 par value, 1ee,eee shares authorized, 40,eee shares issued and outstanding Paid-in capital in excess of par value, common stock Retained earnings $ see,eee 60,eee 430, eee Total stockholders' equity $1,290,e0e In year 2017, the following transactions affected its stockholders' equity accounts Jan. 1 Purchased 4,0ee shares of its own stock at $20 cash per share. 5 Directors declared a $6 per share cash dividend payable on February 28 to the February 5 stockholders of record. 28 Paid the dividend declared on January 5 6 sold 1,see of its treasury shares at $24 cash per share. 22 Sold 2,see of its treasury shares at $17 cash per share. Jan. Feb. July Aug. Sept. 5 Directors declared a $6 per share cash dividend payable on october 28 to the September 25 stockholders of record. 28 Paid the dividend declared on September 5. 31 Closed the $388,eee credit balance (from net income) in the Income Summary account to Retained Earnings Oct. Dec. Required: 1. Prepare journal entries to record each of these transactions for 2017 2 Prepare a statement of retained earnings for the year ended December 31, 2017 3. Prepare the stockholders' equity section of the company's balance sheet as of December 31, 2017 Answer is not complete. Complete this question by entering your answers in the tabs below.

Answer 1

1
Date	General Journal	Debit	Credit
1-Jan	Treasury stock, Common	80,000		=4000*20
	Cash		80,000
5-Jan	Retained earnings	216,000		=(40000-4000)*6
	Common dividend payable		216,000
28-Feb	Common dividend payable	216,000
	Cash		216,000
6-Jul	Cash	36,000		=1500*24
	Treasury stock, Common		30,000	=1500*20
	Paid-in capital, Treasury stock		6,000
22-Aug	Cash	42,500		=2500*17
	Paid-in capital, Treasury stock	6,000
	Retained earnings	1,500
	Treasury stock, Common		50,000	=2500*20
5-Sep	Retained earnings	240,000		=40000*6
	Common dividend payable		240,000
28-Oct	Common dividend payable	240,000
	Cash		240,000
31-Dec	Income summary	388,000
	Retained earnings		388,000
2
	KOHLER CORPORATION
	Statement of Retained Earnings
	For Year Ended December 31, 2017
	Retained earnings, Dec. 31, 2016	430,000
	Add: Net income	388,000
		818,000
	Less: Cash dividends declared	(456,000)
	Less: Treasury stock reissuances	(1,500)
	Retained earnings, Dec. 31, 2017	360,500
3
	KOHLER CORPORATION
	Stockholders' Equity Section of the Balance Sheet
	December 31, 2017
	Common stock - $20 par value	800,000
	Paid-in capital in excess of par value, common stock	60,000
	Total contributed capital	860,000
	Retained earnings	360,500
	Total stockholders' equity	1,220,500