Question

4.

Kohler Corporation reports the following components of stockholders' equity on December 31, 2016: Common stock-$20 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 $ 900,000 70,000 370,000 $1,340,000 In year 2017, the following transactions affected its stockholders' equity accounts. Jan. Jan. Feb. July Aug. Sept. 1 Purchased 5,500 shares of its own stock at $15 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 2,063 of its treasury shares at $19 cash per share. 22 Sold 3,437 of its treasury shares at $12 cash per share. 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 $368,000 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 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare the stockholders' equity section of the company's balance sheet as of December 31, 2017. KOHLER CORPORATION Stockholders' Equity Section of the Balance Sheet December 31, 2017 Common stock - $20 par value $ 900,000 Paid-in capital in excess of par value, common stock 1 70,000 Total contributed capital 1 970,000 Retained earnings Total stockholders' equity $ 970,000
5. 6.7.

Answer 1

	Kohler Corporation
Date	General,Journal	Debit	Credit
01-Jan	Treasury Stock-Common	$        82,500.00
	To Cash		$     82,500.00
	( Amount of purchased of 5500 own stock @$15 per share)
05-Jan	Retained Earnings(45000-5500)*$6	$    2,37,000.00
	To Dividend Distributable		$ 2,37,000.00
	( Amount of dividend declared
28-Feb	Dividend Distributable	$    2,37,000.00
	To Cash		$ 2,37,000.00
	( Amount of dividend paid)
06-Jul	Cash(2063*$19)	$        39,197.00
	To Treasury Stock(2063*$15)		$     30,945.00
	To Paid in capital excess of par(2063*$4)		$       8,252.00
	( Amount of sale of 2063 treasury stock @$19 per share)
22-Aug	Cash(3437*$12)	$        41,244.00
	Paid in capital,Treasury stock	$          8,252.00
	Retained Earnings($51555-41244-8252)	$          2,059.00
	To Treasury Stock(3437*$15)		$     51,555.00
	( Amount of sale of 3427 Treasury stock @$12)
05-Sep	Retained Earnings(45000*$6)	$    2,70,000.00
	To Dividend Distributable		$ 2,70,000.00
	( Amount of dividend declared on 40000 shares @$4 per share)
28-Oct	Dividend Distributable	$    2,70,000.00
	To Cash		$ 2,70,000.00
	( Amount of dividend paid)
31st Dec	Income summary	$    3,68,000.00
	To Retained Earnings		$ 3,68,000.00
	( Amount of retained earnings transferred to Income summary account)
	Kohler Corporation
	Statement of Retained Earnings
	For the year ended December 31st,2017
	Beginning Retained Earnings	$    3,70,000.00
	Add: Net Income	$    3,68,000.00
		$    7,38,000.00
	Less: Cash Dividend	$ -5,07,000.00
	Less: Reissue of Treasury stock	$        -2,059.00
	Ending Retained Earnings	$    2,28,941.00
	Kohler Corporation
	Stockholder's Equity section of Balance Sheet
	For the year ended December 31st,2017
	Common Stock (45000 shares @$20 per share)	$    9,00,000.00
	Paid in capital-excess of par value common stock	$        70,000.00
	Total contributed capital	$    9,70,000.00
	Retained Earnings	$    2,28,941.00
	Total Stockholder's equity	$ 11,98,941.00