Kohler Corporation reports the following components of
stockholders’ equity on December 31, 2017.
Common stock—$15 par value, 100,000 shares authorized, 45,000 shares issued and outstanding |
$ | 675,000 |
Paid-in capital in excess of par value, common stock | 80,000 | |
Retained earnings | 430,000 | |
Total stockholders' equity | $ | 1,185,000 |
In year 2018, the following transactions affected its stockholders’
equity accounts.
Jan. | 1 | Purchased 6,000 shares of its own stock at $20 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 $24 cash per share. | ||
Aug. | 22 | Sold 3,750 of its treasury shares at $17 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 $388,000 credit balance (from net income) in the Income Summary account to Retained Earnings. |
Required:
1. Prepare journal entries to record each of these
transactions for 2018.
2. Prepare a statement of retained earnings for
the year ended December 31, 2018.
3. Prepare the stockholders' equity section of the
company’s balance sheet as of December 31, 2018.
Date | Account Title | Debit | Credit | |
Jan 1 | Cash | $120,000 | [6000 x $20] | |
Treasury Stock | $120,000 | |||
(To record purchase of treasury stock) | ||||
Jan 5 | Retained Earnings | $78,000 | [(45000-6000) x $2] | |
Dividend Payable | $78,000 | [4600 x $1] | ||
(To record declaration of dividend) | ||||
Feb 28 | Cash | $78,000 | ||
Dividend Payable | $78,000 | |||
(To record payment of dividend) | ||||
July 6 | Cash | $54,000 | [2250 x $24] | |
Paid In Capital - Treasury Stock | $9,000 | [2250 x $4] | ||
Treasury Stock | $45,000 | [2250 x $20] | ||
(To record issue of treasury stock) | ||||
Aug 22 | Cash | $63,750 | [3750 x $17] | |
Paid In Capital - Treasury Stock | $9,000 | |||
Retained Earnings | $2,250 | |||
Treasury Stock | $75,000 | [3750 x $20] | ||
(To record issue of treasury stock) | ||||
Sep 5 | Retained Earnings | $90,000 | [45000 x $2] | |
Dividend Payable | $90,000 | |||
(To record declaration of dividend) | ||||
Oct 28 | Cash | $90,000 | ||
Dividend Payable | $90,000 | |||
(To record payment of dividend) | ||||
July 10 | Cash | $90,000 | ||
Dividend Payable | $90,000 | |||
(To record payment of common stock dividend) | ||||
Dec 31 | Income Summary | $388,000 | ||
Retained Earniings | $388,000 | |||
(To record transfer of net income to retained earnings) | ||||
Kohler Company | ||||
Statement of Retained Earnings | ||||
For the year ended Dec 31, 2018 | ||||
Beginning Balance as on Jan 1, 2018 | $430,000 | |||
Add: Net Income | $388,000 | |||
$818,000 | ||||
Less: Dividend | ($168,000) | |||
Less: Treasury Stock | ($2,250) | |||
Ending Balance as on Dec 31, 2019 | $647,750 | |||
Kohler Company | ||||
Partial Balance Sheet | ||||
Dec 31, 2018 | ||||
Particulars | Amount | Amount | ||
Stockholders' Equity | ||||
Common Stock | $675,000 | |||
Paid in Capital in Excess of Par - Common Stock | $80,000 | |||
Total Paid in Capital | $755,000 | |||
Retained Earnings | $647,750 | |||
Total Stockholders' Equity | $1,402,750 |
Kohler Corporation reports the following components of stockholders’ equity on December 31, 2017. Common stock—$15...
Kohler Corporation reports the following components of stockholders' equity on December 31, 2017 Common stock-$15 par value, 100,000 shares authorized, 45,000 shares issued and outstanding Paid-in capital in excess of par value, common stock Retained earnings Total stockholders' equity $ 675, eee 70, eee 370 eee $1,115, eee In year 2018, the following transactions affected its stockholders' equity accounts. Jan. 1 Purchased 5,500 shares of its own stock at $25 cash per share. Jan. 5 Directors declared a 54 per...
Kohler Corporation reports the following components of stockholders' equity on December 31, 2017 Common stock-$15 par value, 100, 200 shares authorized, 45,000 shares issued and outstanding Paid-in capital in excess of par value, common stock Retained earnings Total stockholders' equity $ 675, eee 7e, eee 37e eee $1,115, eee In year 2018, the following transactions affected its stockholders' equity accounts. Jan. 1 Purchased 5,5ee shares of its own stock at $25 cash per share. Jan. 5 Directors declared a 54...
Kohler Corporation reports the following components of stockholders' equity on December 31, 2017 Common stock-$25 par value, 1ee,eee shares authorized, 55,e00 shares issued and outstanding Paid-in capital in excess of par value, common stock Retained earnings Total stockholders' equity $1,375, eee 7e, eee 400,e00 $1,845,000 In year 2018, the following transactions affected its stockholders' equity accounts. 1 Purchased 4,500 shares of its Own stock at $20 cash per share. 5 Directors declared a $4 per share cash dividend payable on...
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...
Kohler Corporation reports the following components of stockholders’ equity on December 31, 2017. Common stock—$15 par value, 100,000 shares authorized, 40,000 shares issued and outstanding $ 600,000 Paid-in capital in excess of par value, common stock 80,000 Retained earnings 400,000 Total stockholders' equity $ 1,080,000 In year 2018, the following transactions affected its stockholders’ equity accounts. Jan. 1 Purchased 4,500 shares of its own stock at $15 cash per share. Jan. 5 Directors declared a $2 per share cash dividend...
Kohler Corporation reports the following components of stockholders’ equity on December 31, 2017. 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 460,000 Total stockholders' equity $ 1,640,000 In year 2018, the following transactions affected its stockholders’ equity accounts. Jan. 1 Purchased 4,500 shares of its own stock at $15 cash per share. Jan. 5 Directors declared a $4 per share cash dividend...
Kohler Corporation reports the following components of stockholders’ equity at December 31, 2018. Common stock—$15 par value, 100,000 shares authorized, 45,000 shares issued and outstanding $ 675,000 Paid-in capital in excess of par value, common stock 80,000 Retained earnings 430,000 Total stockholders' equity $ 1,185,000 During 2019, the following transactions affected its stockholders’ equity accounts. Jan. 2 Purchased 5,000 shares of its own stock at $25 cash per share. Jan. 5 Directors declared a $6 per share cash dividend payable...
Kohler Corporation reports the following components of stockholders' equity on December 31, 2016: Common stock-$15 par value, 188,800 shares authorized, 50, eee shares issued and outstanding Paid-in capital in excess of par value, common stock Retained earnings Total stockholders' equity $ 750,000 70, eee 438,888 $1,250,000 In year 2017, the following transactions affected its stockholders' equity accounts. Jan. 1 Purchased 6,800 shares of its own stock at $2e cash per share. Jan. 5 Directors declared a $6 per share cash...
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...
Kohler Corporation reports the following components of stockholders’ equity on December 31, 2016: 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 60,000 Retained earnings 430,000 Total stockholders' equity $ 1,240,000 In year 2017, the following transactions affected its stockholders’ equity accounts. Jan. 1 Purchased 5,500 shares of its own stock at $15 cash per share. Jan. 5 Directors declared a $6 per share cash dividend...