Accounting Assignment | College Homework Help

Kohler Corporation reports the following components of stockholders’ equity at December 31, 2018.

Common stock—$25 par value, 100,000 shares authorized,
45,000 shares issued and outstanding
$ 1,125,000
Paid-in capital in excess of par value, common stock 60,000
Retained earnings 400,000
Total stockholders’ equity $ 1,585,000

During 2019, the following transactions affected its stockholders’ equity accounts.

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Jan. 2 Purchased 5,500 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 2,063 of its treasury shares at $24 cash per share.
Aug. 22 Sold 3,437 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 $408,000 credit balance (from net income) in the Income Summary account to Retained Earnings.


Required:

1. Prepare journal entries to record each of these transactions.
2. Prepare a statement of retained earnings for the year ended December 31, 2019.
3. Prepare the stockholders’ equity section of the company’s balance sheet as of December 31, 2019