Solution 1:
Kohler Corporation - Journal Entries | |||
Date | Particulars | Debit | Credit |
1-Jan | Treasury Stock A/c Dr | $150,000.00 | |
To Cash | $150,000.00 | ||
(Being 6000 shares of treasury stock purchased at $25 per share) | |||
5-Jan | Retained Earnings Dr | $88,000.00 | |
To Dividend payable [(50000 - 6000)*2] | $88,000.00 | ||
(Being dividend declared) | |||
28-Feb | Dividend Payable Dr | $88,000.00 | |
To Cash | $88,000.00 | ||
(Being dividend paid) | |||
6-Jul | Cash A/c Dr (2250*29) | $65,250.00 | |
To Treasury Stock (2250*25) | $56,250.00 | ||
To Additional Paid in Capital (2250*$4) | $9,000.00 | ||
(Being 2250 shares of treasury stock sold at $29 per share) | |||
22-Aug | Cash A/c Dr (3750*22) | $82,500.00 | |
Additional Paid in Capital A/c Dr | $9,000.00 | ||
Retained Earnings Dr (Balancing figure) | $2,250.00 | ||
To Treasury Stock (3750*$25) | $93,750.00 | ||
(Being 3750 shares of treasury stock sold at $22 per share) | |||
5-Sep | Retained Earnings Dr | $100,000.00 | |
To Dividend payable (50000*2) | $100,000.00 | ||
(Being dividend declared) | |||
28-Oct | Dividend Payable Dr | $100,000.00 | |
To Cash | $100,000.00 | ||
(Being dividend paid) | |||
31-Dec | Income summary Dr | $388,000.00 | |
To Retained Earnings | $388,000.00 | ||
(Being income transferred to retained earnings) |
Solution 2:
Kohler Corporation - Statement of Retained Earnings on 31.12.2019 | |
Particulars | Amount |
Opening balance | $400,000.00 |
Add: Income for 2019 | $388,000.00 |
$788,000.00 | |
Less: Dividend Paid (44000*$2 + 50000*$2) | -$188,000.00 |
Less: Loss on sale of treasury stock | -$2,250.00 |
Ending balance of Retained Earnings | $597,750.00 |
Solution 3:
Stockholder Equity Section of Balance sheet | |
Kohler Corporation at December 31, 2019 | |
Particulars | Amount |
Stockholders Equity: | |
Common
stock—$15 par value, 100,000 shares authorized, 50,000 shares issued and outstanding |
$750,000.00 |
Paid-in capital in excess of par value, common stock | $80,000.00 |
Total contributed Capital | $830,000.00 |
Retained Earnings | $597,750.00 |
Total Stockholder's Equity | $1,427,750.00 |
Problem 11-2A Cash dividends, treasury stock, and statement of retained earnings LO C3, P2, P3 Kohler...
Problem 11-2A Cash dividends, treasury stock, and statement of retained earnings LO C3, P2, P3 [The following information applies to the questions displayed below.] Kohler Corporation reports the following components of stockholders' equity on December 31, 2015: Common stock-$10 par value, 100,000 shares authorized, 50,000 shares issued and outstanding Paid-in capital in excess of par value, common stock Retained earnings $ 500,000 80,000 430,000 Total stockholders' equity $1,010,000 In year 2016, the following transactions affected its stockholders' equity accounts. Jan....
Problem 11-2A 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, 2018. Common stock—$20 par value, 100,000 shares authorized, 55,000 shares issued and outstanding $ 1,100,000 Paid-in capital in excess of par value, common stock 80,000 Retained earnings 400,000 Total stockholders' equity $ 1,580,000 During 2019, the following transactions affected its stockholders’ equity accounts. Jan. 2 Purchased 5,000 shares of its own stock at...
Problem 13-2A 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, 2018. Common stock-$25 par value, 100,000 shares authorized, mon stock-$25 pued and outstanding common stock Paid-in capital in excess of par value, common stock Retained earnings Total stockholders' equity $1,375.000 70.000 370.000 $1,815,000 During 2019, the following transactions affected its stockholders' equity accounts. Jan. 2 Purchased 4,500 shares of its own stoct at...
Problem 13-2A Cash dividends, treasury stock, and statement of retained earnings LO C3, P2, P3 Kohler Corporation reports the following components of stockholders’ equity on December 31, 2016: Common stock—$10 par value, 100,000 shares authorized, 40,000 shares issued and outstanding $ 400,000 Paid-in capital in excess of par value, common stock 60,000 Retained earnings 270,000 Total stockholders' equity $ 730,000 In year 2017, the following transactions affected its stockholders’ equity accounts. Jan. 1 Purchased 4,000 shares of its own stock...
Kohler Corporation reports the following components of stockholders’ equity at December 31, 2018. Common stock—$15 par value, 100,000 shares authorized,40,000 shares issued and outstanding$600,000Paid-in capital in excess of par value, common stock70,000Retained earnings400,000Total stockholders' equity$1,070,000 During 2019, the following transactions affected its stockholders’ equity accounts. Jan.2Purchased 6,000 shares of its own stock at $20 cash per share.Jan.5Directors declared a $4 per share cash dividend payable on February 28 to the February 5 stockholders of record.Feb.28Paid the dividend declared on January 5.July6Sold 2,250 of...
Exercise 11-21 Cash dividends, treasury stock, and statement of retained earnings LO C3, P2, P3 Alexander Corporation reports the following components of stockholders' equity at December 31, 2018. Common stock-$25 par value, 60,000 shares authorized, 37,000 shares issued and outstanding Paid-in capital in excess of par value, common stock Retained earnings Total stockholders' equity $ 925,000 74,000 364,000 $1,363,000 During the year, the following transactions affected its stockholders' equity accounts. Jan. Jan. Feb. July Aug Sept. 2 Purchased 3,700 shares...
Exercise 11-21 Cash dividends, treasury stock, and statement of retained earnings LO C3, P2, P3 Alexander Corporation reports the following components of stockholders' equity at December 31, 2018. Common stock-$25 par value, 50,000 shares authorized, 33,000 shares issued and outstanding Paid-in capital in excess of par value, common stock Retained earnings Total stockholders' equity $ 825,000 66,000 350,000 $1,241,000 During the year, the following transactions affected its stockholders' equity accounts. Jan. 2 Purchased 3,300 shares of its own stock at...
Exercise 11-21 Cash dividends, treasury stock, and statement of retained earnings LO C3, P2, P3 Alexander Corporation reports the following components of stockholders' equity at December 31, 2018. Common stock-$25 par value, 60,000 shares authorized, 40,000 shares issued and outstanding Paid-in capital in excess of par value, common stock Retained earnings Total stockholders' equity $1,000,000 80,000 375,000 $1,455,000 During the year, the following transactions affected its stockholders' equity accounts. Jan. Jan. Feb. July Aug. Sept. 2 Purchased 4,000 shares of...
Exercise 11-21 Cash dividends, treasury stock, and statement of retained earnings LO C3, P2, P3 Alexander Corporation reports the following components of stockholders' equity at December 31, 2018. Common stock-$25 par value, 60,000 shares authorized, 40,000 shares issued and outstanding Paid-in capital in excess of par value, common stock Retained earnings Total stockholders' equity $1,000,000 80,000 375,000 $1,455,000 During the year, the following transactions affected its stockholders' equity accounts. Jan. 2 Purchased 4,000 shares of its own stock at $25...
Exercise 11-18 Cash dividends, treasury stock, and statement of retained earnings LO C3, P2, P3 Alexander Corporation reports the following components of stockholders' equity on December 31, 2016: Common stock-$25 par value, 60,008 shares authorized, 35, eee shares issued and outstanding Paid-in capital in excess of par value, connon stock Retained earnings S 875,000 70,000 357,e0e Total stockholders equity $1,302,000 In year 2017, the following transactions affected its stockholders' equity accounts. Jan. 2 Purchased 3,5ee shares of its own stock...