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.

Sep. 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.

Required

1. Prepare journal entries to record each of these transactions.

2. Prepare 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.