Kohler Corporation reports the following components of stockholders equity on December 31, 2013: Common stock $ 10

Question:

Kohler reports the following components of stockholders’ equity on December 31, 2013:
—$ 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
In year 2014, the following transactions affected its stockholders’ equity accounts.
Jan. 1 Purchased 4,000 shares of its own stock at $ 20 cash per share.
Jan. 5 Directors declared a $ 2 per share cash payable on Feb. 28 to the Feb. 5 stockholders of record.
Feb. 28 Paid the 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 payable on October 28 to the September 25 stockholders of record.
Oct. 28 Paid the declared on September 5.
Dec. 31 Closed the $ 388,000 credit balance (from net income) in the Income Summary account to Retained Earnings.

Required
1. Prepare journal entries to record each of these transactions for 2014.
2. Prepare a statement of retained earnings for the year ended December 31, 2014.
3. Prepare the stockholders’ equity section of the company’s as of December 31, 2014.

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