Chapter 14 Review Midterm Problems

Chapter 14 Review Midterm Problems - Problem 13-2A (60...

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Unformatted text preview: Problem 13-2A (60 minutes) Part 1 Jan. 1 Treasury Stock, Common................................... 80,000 Cash................................................................ 80,000 Purchased treasury stock (4,000 x $20). Jan. 5 Retained Earnings............................................... 72,000 Common Dividend Payable.......................... 72,000 Declared $2 dividend on 36,000 outstanding shares. Feb. 28 Common Dividend Payable................................ 72,000 Cash................................................................ 72,000 Paid cash dividend. July 6 Cash*..................................................................... 36,000 Treasury Stock, Common**.......................... 30,000 Paid-In Capital, Treasury Stock***................ 6,000 Reissued treasury stock. *(1,500 x $24) **(1,500 x $20) ***(1,500 x $4) Aug. 22 Cash*..................................................................... 42,500 Paid-In Capital, Treasury Stock.......................... 6,000 Retained Earnings............................................... 1,500 Treasury Stock, Common**.......................... 50,000 Reissued treasury stock. *(2,500 x $17) **(2,500 x $20) Sept. 5 Retained Earnings............................................... 80,000 Common Dividend Payable.......................... 80,000 Declared $2 dividend on 40,000 outstanding shares. Oct. 28 Common Dividend Payable................................ 80,000 Cash................................................................ 80,000 Paid cash dividend. Dec. 31 Income Summary................................................. 388,000 Retained Earnings......................................... 388,000 Closed Income Summary account. Problem 13-2A ( Concluded) Part 2 KOHLER CORPORATION Statement of Retained Earnings For Year Ended December 31, 2009 Retained earnings, December 31, 2008........................ $270,000 Plus net income............................................................... 388,000 658,000 Less:Cash dividends declared...................................... (152,000) Treasury stock reissuances................................. (1,500 ) Retained earnings, December 31, 2009........................ $504,500 Part 3 KOHLER CORPORATION Stockholders Equity Section of the Balance Sheet December 31, 2009 Common stock $10 par value, 100,000 shares authorized, 40,000 shares issued and outstanding...authorized, 40,000 shares issued and outstanding....
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Chapter 14 Review Midterm Problems - Problem 13-2A (60...

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