I did tried to solve this question, and prepared journal entries for it. But my Retained Earning is different than the provided answer for this question. Can you please let me know what mistake I made, so I can correct it. I am explaining my question and the way I solved this question .Please let me if it is possible. Thanks
Kohler cprportaion reports the following on December,2008
Common stock--$10 per value, 100000 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 2009, the following transactions affected its stockholder equity accounts.
1. Purchased 4,000 shares of its own stock at $20 cash per share.
My general Entry for this is
Common stock 80,000
cash 80,000
2. Jan 5, Directors declared a $2 per share dividend payable on Feb.28 to the Feb.5 stockholders of record.
My general entry for this is
Retained Earnings 80,000
Common Dividend Payable 80,000
Feb 28. Paid the dividen declared on January 5.
Common dividend payable 80,000
Cash 80,000
July 6 Sold 1,500 of its treasury shares at $24 cash per share.
My general enty is
Cash 36,000
Treasury stock,common 15,000
Paid in capital, Treasury stock 21,000
Aug 22, Sold 2,500 of its treasury shares at $17 cash per share
My entry for this is
Cash 42,500
Treasury stock,common 25,000
Paid in capital, Treasury stock 17,500
Sep 5, Directors declared a $2 per share cash dividend payable on October 28 to the September 25 stockholder of record
My general entry for this is
Retained Earnings 80,000
Common Dividend Payable 80,000
Oct 28. Paid the dividend declared on September 5.
Common dividend payable 80,000
Cash 80,000
Dec 31, Closed the $388,000 credit balance from net income in the Income summary account of Retained Earnings
My GEneral entry is
Retained Earnings 388,000
Net Income 388,000
After these entries , I prepared the Retained Earning Statement, and came up with 270,000 +388,000-160,000 = 498,000, but answer should be $504,500.
Please let me know where I am making mistake. Thanks :confused::confused: