Question

Kohler Corporation reports the following components of stockholders’ equity on December 31, 2017.

Common stock—$15 par value, 100,000 shares authorized, 50,000 shares issued and outstanding	$	750,000
Paid-in capital in excess of par value, common stock		80,000
Retained earnings		400,000
Total stockholders' equity	$	1,230,000

In year 2018, the following transactions affected its stockholders’ equity accounts.

Jan.		1		Purchased 6,000 shares of its own stock at $25 cash per share.
Jan.		5		Directors declared a $2 per share cash dividend payable on February 28 to the February 5 stockholders of record.
Feb.		28		Paid the dividend declared on January 5.
July		6		Sold 2,250 of its treasury shares at $29 cash per share.
Aug.		22		Sold 3,750 of its treasury shares at $22 cash per share.
Sept.		5		Directors declared a $2 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 $408,000 credit balance (from net income) in the Income Summary account to Retained Earnings.

Record the purchase of 6,000 shares of its own common stock for $25 cash per share.

	Date General Journal Debit Credit Jan 01

Record the declaration of a cash dividend of $2 per share.

Date General Journal Debit Credit Jan 05

Record the payment of the cash dividend.

	Date General Journal Debit Credit Feb 28

Record the reissue of 2,250 shares of the treasury stock for $29 cash per share.

	Date General Journal Debit Credit Jul 06

Answer 1

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