Kohler Corporation reports the following components of stockholders' equity at December 31, 2019. Common stock-$15 par v

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Kohler Corporation Reports The Following Components Of Stockholders Equity At December 31 2019 Common Stock 15 Par V 1 (168.09 KiB) Viewed 43 times

Kohler Corporation reports the following components of stockholders' equity at December 31, 2019. Common stock-$15 par value, 100,000 shares authorized, 55,000 shares issued and outstanding Paid-in capital in excess of par value, common stock Retained earnings Total stockholders' equity $ 825,000 70,000 430,000 $ 1,325,000 During 2020, the following transactions affected its stockholders' equity accounts. January 2 Purchased 4,000 shares of its own stock at $15 cash per share. January 5 Directors declared a $6 per share cash dividend payable on February 28 to the February 5 stockholders of record February 28 Paid the dividend declared on January 5. July 6 Sold 1,500 of its treasury shares at $19 cash per share. August 22 Sold 2,500 of its treasury shares at $12 cash per share. September 5 Directors declared a $6 per share cash dividend payable on October 28 to the September 25 stockholders of record October 28 Paid the dividend declared on September 5. December 31 Closed the $428,000 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, 2020. 3. Prepare the stockholders' equity section of the company's balance sheet as of December 31, 2020.