11-2A (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, 2019. Common stock-$15 par value, 100,000 shares authorized, 45,000 shares issued and outstanding $ 675,000 Paid-in capital in excess of par value, common stock Retained earnings Total stockholders' equity 80,000 430,000 $1,185,000 During 2020, the following transactions affected its stockholders' equity accounts. Jan. Jan. Feb. 2 Purchased 5,000 shares of its own stock at $15 cash per share. 5 Directors declared a $4 per share cash dividend payable on February 28 to the February 5 stockholders of record. 28 Paid the dividend declared on January 5. July 6 Sold 1,875 of its treasury shares at $19 cash per share. Aug. 22 Sold 3,125 of its treasury shares at $12 cash per share. Sept. 5 Directors declared a $4 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 $408,000 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. Complete this question by entering your answers in the tabs below. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare journal entries to record each of these transactions. View transaction list View journal entry worksheet No Date General Journal Debit Credit 1 Jan 02 Treasury stock, Common 75,000 Cash 2 Jan 05 Retained earnings Common dividend payable 3 Feb 28 Common dividend payable Cash 75,000 160,000 160,000 160,000 160,000 4 Jul 06 Cash 35,625 Treasury stock, Common 28,125 Paid-In capital, Treasury stock 7,500 5 Aug 22 Cash 37,500 Paid-In capital, Treasury stock 7,500 Retained earnings 1,875 Treasury stock, Common 46,875 6 Sep 05 Retained earnings 430,000 Common dividend payable Record the declaration of a cash dividend of $4 per share. Note: Enter debits before credits. Date General Journal Debit Credit Sep 05 Retained earnings 430,000 Common dividend payable Record entry Clear entry View general journal Record the payment of the cash dividend. Note: Enter debits before credits. Date Oct 28 General Journal Debit Credit Record entry Clear entry View general journal Record the payment of the cash dividend. Note: Enter debits before credits. Date Oct 28 General Journal Debit Credit Record entry Clear entry View general journal 2 3 4 5 6 7 8 Record the entry to close the $408,000 credit balance (from net income) in the Income Summary account to Retained Earnings. Note: Enter debits before credits. Date Dec 31 General Journal Debit Credit Record entry Clear entry View general journal Required 1 Required 2 Required 3 Prepare a statement of retained earnings for the year ended December 31, 2020. (Amounts to be deducted should be indicated by a minus sign.) KOHLER CORPORATION Statement of Retained Earnings For Year Ended December 31, 2020 0 $ 0 < Required 1 Required 3 > Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare the stockholders' equity section of the company's balance sheet as of December 31, 2020. KOHLER CORPORATION Stockholders' Equity Section of the Balance Sheet December 31, 2020 Total contributed capital Total stockholders' equity < Required 2 0 $ 0 Required 3 >