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Journal entries, and statement of retained earnings

Kohler Corporation reports the following components of stockholders' equity on December 31, 2008.

Common stock-$20 par value, 200,000 shares authorized,
50,000 shares issued and outstanding $ 500,000
Paid-in capital in excess of par value, common stock 70,000
Retained earnings 260,000

$ 830,000

In year 2009, the following transactions affected its stockholders' equity accounts:

Jan. 1 Purchased 3,000 shares of its own stock at $30 cash per share.
Jan. 5 Directors declared a $3 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 1,600 of its treasury shares at $26 cash per share.
Aug. 22 Sold 1,400 of its treasury shares at $19 cash per share.
Sep. 5 Directors declared a$3 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 $366,000 credit balance (from net income) in the Income Summary account to Retained Earnings.

Requirement 1:

Prepare journal entries to record these transactions for 2009.
Date General Journal Debit Credit
Jan 1 _____ _____
_______ _____

Jan 5 _______ _____
______ _____

Feb 28 _______ ______
_______ ______

July 6 _______ ______
_______ _____
_______ ______

Aug 22 ______ _______
______ ________
______ _______
_______ ______

Sept 5 _______ _______
______ _______

Oct 28 ________ _______
_______ ________

Dec 31 _______ ________
_______ ________

Requirement 2:

Prepare a statement of retained earnings for the year ended December 31, 2009.
KOHLER CORPORATION
Statement of Retained Earnings
For Year Ended December 31, 2009

_______ $ ______
_______: _________ ______
______
_______: _________ ______
_________ _______
_______ _______

Requirement 3:

Prepare the stockholders' equity section of the company's balance sheet as of December 31, 2009
KOHLER CORPORATION
Stockholders' Equity Section of the Balance Sheet
December 31, 2009

Common stock-$20 pare value, 100,000 share authorized, 50,000 shares issued and outstanding $ ________________
Paid-in capital in excess of pare value, common stock ________________
Retained Earnings _________________
Total stockholders' equity $ _________________

Solution Summary

The solution explains the journal entries for the given equity transactions and how to prepare a statement of retained earnings.

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