1 18 point Problem 13-2A (Algo) Cash dividends, treasury stock, and statement of retained earnings LO C3, P2, P3 Kohler Corporation reports the following components of stockholders' equity at December 31 of the prior year Common stock 570 per value 100,000 shareesothorized 40,000 share ined and outstanding $800,000 Paid-in capital in excess of par value, common stock 70,000 Betained earning 400.000 Total stockholders' equity $ 1.270,000 During the current year, the following transactions affected its stockholders' equity accounts. January 2 Purchased 6,000 shares of its own stock at $15 cash per share. January 5 Directors declared as per share cash dividend payable on February 20 to the February 5 stockholders of record February 26 Paid the dividend declared on January 5. July Sold 3,000 of its treasury shares at $19 cash per share. August 22 Sold 3,000 of its treasury shares at $11 cash per share. Bestanbet Directors declared a 5 pet share canh dividend payable on October 24 to the september 25 stockholders of record. October 28 vaid the dividend declared on September 3 December cloned the $420.000 credit balance (from net Income) in the Income Summary account to Retained taxningo. Required: 1. Prepare Journal entries to record each of these transactions 2. Prepare a statement of retained earnings for the current year ended December 31 3. Prepare the stockholders' equity section of the balance sheet as of December 31 of the current year. Required 1 Required 2 Required 3 Prepare journal entries to record each of these transactions. No Credit Date January 02 1 General Journal Treasury stock, Common Cash Debit 90,000 >$ 90,000 2 January 05 Retained earnings Common dividend payable 213,000 213,000 3 February 28 Common dividend payable Cash 213,000 $ 213,000 X 4 July 06 57.000 Cash Treasury stock, Common Pald-In capital, Treasury stock 45,000 45,000 5 August 22 Cash Paid In capital, Treasury stock Treasury stock, Common 33,000 9,000 $ OO 45,000 6 September 05 > 240,000 Retained earnings Common dividend payable 240,000 7 October 28 and payable 240,000 Cash 240,000 8 December 31 Income summary 428,000 > > Retained earnings 428,000 Required: Required 2 > Required 1 Required 2 Required 3 Prepare a statement of retained earnings for the current year ended December 31. (Amounts to be deducted she indicated by a minus sign.) KOHLER CORPORATION Statement of Retained Earnings For Current Year Ended December 31 Retained earnings, December 31, prior year Add: Net income Less: Cash dividends declared Retained earnings, December 31, current year $ 400,000 428,000 (453,000) $ 375,000 Required 1 Required 2 Requiredd 3 Prepare the stockholders' equity section of the balance sheet as of December 31 of the current year. KOHLER CORPORATION Stockholders' Equity Section of the Balance Sheet December 31 Paid-in capital in excess of par value, common stock $ 70,000 Treasury stock reissuances Total contributed capital 70,000 Retained earnings 375,000 Total stockholders' equity $ 445,000 (Required 2 Required