Please check my answer. Kohler Corporation reports the following components of s
ID: 2501215 • Letter: P
Question
Please check my answer.
Kohler Corporation reports the following components of stockholders' equity on December 31, 2015: Common stock-$20 par value, 100,000 shares authorized, 50,000 shares issued and $1,000,000 outstanding Paid-in capital in excess of par value, common stock 80,000 Retained earnings 400,000 $1,480,000 Total stockholders' equity n year 2016, the following transactions affected its stockholders equity accounts. Jan. 1 Purchased 4,500 shares of its own stock at $25 cash per share. Jan. 5 Directors declared a $4 per share cash dividend payable on Feb. 28 to the Feb. 5 stockholders of record. Feb. 28 Paid the dividend declared on January 5. July 6 Sold 1,688 of its treasury shares at $29 cash per share. Aug. 22 Sold 2,812 of its treasury shares at $22 cash per share. Sept. 5 Directors declared a $4 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 $368,000 credit balance (from net income) in the Income Summary account to Retained Earnings.Explanation / Answer
Your all entries are correct except 3 entries listed below
August 22 : You sold $25 treasury stock at $22 so you have to record the loss
Cash Dr $61,864
Paid in Share Capita , Treasury stock (Loss) Dr $8,436 ( 2812 X 3)
Treasury stock Cr $70,300
Sept 05 : Since on this date you have no treasury stock because you sold all before so you have to pay dividend on all 50,000 shares @ $4 on each share
Retained Earnings Dr $200,000
Common dividend payable Cr $200,000
Oct 28: Since payable is $ 200,000 then you have to pay it that only
Common dividend Payable Dr $ 200,000
Cash Cr $200,000