CSecure httpnewconnectmheducstion.com/fow/connect.htm Test 4 - Fall, 2017 6 Help
ID: 2587211 • Letter: C
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CSecure httpnewconnectmheducstion.com/fow/connect.htm Test 4 - Fall, 2017 6 Help Save & Exit Submit Saved Kohler Corporation reports the following components of stockholders' equity on December 31, 2016 Common stock-$20 par value, 1e0,000 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 70,000 400,000 $1,370,0e0 02:06:03 In year 2017, the following transactions affected its stockholders' equity accounts Jan. Jan. 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 February 28 to the February 5 stockholders of record. Feb. 28 Paid the dividend declared on January 5 July 6 Sold 1,688 of its treasury shares at $24 cash per share. Aug. 22 Sold 2,812 of its treasury shares at $17 cash per share. Sept. 5 Directors declared a $4 per share cash dividend payable on October 28 to the September 25 Mc Graw Hill Activate Windows Prev 10 of 26 Next > to Settings to activate Windons lype here to searchExplanation / Answer
Date General journal Debit Credit 1-Jan Treasury stock 90000 cash (4500*20) 90,000 5-Jan Retained earnings 162000 Dividends payable 162,000 (45000-4500)*4 28-Feb Dividends payable 162,000 cash 162,000 6-Jul Cash (1,688*24) 40512 Treasury stock 33760 paid in capital in excess of par- TS 6752 22-Aug Cash (2812*17) 47804 paid in capital in excess of par -TS 6,752 Retained earnings 1,684 Treasury stock (2812*20) 56240 5-Sep Retained earnings 180000 Dividends payable (45000*4) 180,000 28-Oct Dividends payable 180,000 cash 180,000 31-Dec Income summary 408,000 Retained earnings 408,000 Statement of retained earnings opening balance ,jan 1 400,000 add :Net income 408,000 808,000 less:Cash Dividend 342000 Treasury stock 1684 Closing balance,Dec 31 464,316 Stockholders Equity section of the Balance Sheet common stock 900,000 paid in capital in excess of par 70,000 total contributed capital 970,000 Retained earnings 464,316 total Stockholders Equity 1,434,316