Kohler Corporation reports the following components of stockholders' equity at December 31, 2019.
Common stock—$10 par value, 100,000 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 stockholders' equity$730,000
During 2020, the following transactions affected its stockholders' equity accounts.
Jan. 2 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 February 28 to the February 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 a $2 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 $388,000 credit balance (from net income) in the Income Summary account to Retained Earnings.
1. Prepare journal entries to record each of these transaction
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.
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