Reference no: EM131774899
Kohler Corporations reports the following components of stockholders equity on December 31, 2013
common stock-$10 par value, 100, shares authorized,
40,000 shares issued and outstanding........................................ $400,000
Paid-in capital in excess of par value, common stock................$60,000
Retained Earnings.........................................................................................270,000
Total stockholder's equity..........................................................................730,000
In year 2014, the following transactions affected its stockholders' equity accounts
Jan. 1 Purchased 4,000 shares of its own stock at $20 cash per share
Jan. 5 Directors declared a $2 per share cash dividend payable on Feb.28 to Feb.5 stockholders of record
Feb 28 Paid the dividend declared on January 5
July 6 Sold 1,500 of its treasury shares at $24 cash per share
Aug.22 Sold 2,500 of its treasury shares at 17 cash per share
Sept 5 Directors declared at $2 per share cash dividend payable on October 28 to the September 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 2014
2. Prepare a statement of retained earnings for the year ended December 31, 2014
3. Prepare the stockholders' equity section of the company's balance sheet as of December 31,2014