11-2A (Static) 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-$10 par value, 100, 000 shares authorized, 40,000 shares issued and outstanding Paid-in capital in excess of par value, common stock Retained earnings Total stockholders' equity During the current year, the following transactions affected its stockholders' equity accounts. January 2 Purchased 4,000 shares of its own stock at $20 cash per share.. January 5 February 28 July 6 August 22 September 5 October 28 $ 400,000 60,000 270,000 $730,000 Directors declared a $2 per share cash dividend payable on February 28 to the February 5 stockholders of record. Paid the dividend declared on January 5. Sold 2,000 of its treasury shares at $24 cash per share. Sold 2,000 of its treasury shares at $16 cash per share. Directors declared a $2 per share cash dividend payable on October 28 to the September 25 stockholders of record. Paid the dividend declared on September 5. December 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 current year ended December 31. 3. Prepare the stockholders' equity section of the balance sheet as of December 31 of the current year. Complete this question by entering your answers in the tabs below. 1 Record the purchase of 4,000 shares of its own common stock for $20 cash per share. 2 Record the declaration of a cash dividend of $2 per share. 3 4 5 Record the payment of the cash dividend. Record the reissue of 2,000 shares of the treasury stock for $24 cash per share. Record the reissue of 2,000 shares of the treasury stock for $16 cash per share. 6 Record the declaration of a cash dividend of $2 per share. Note: = journal entry has been entered Record entry Clear entry 3 Record the payment of the cash dividend. 4 5 Record the reissue of 2,000 shares of the treasury stock for $24 cash per share. Record the reissue of 2,000 shares of the treasury stock for $16 cash per share. 6 Record the declaration of a cash dividend of $2 per share. 7 Record the payment of the cash dividend. 8 Record the entry to close the $388,000 credit balance (from net income) in the Income Summary account to Retained Earnings. = journal entry has been entered Note: Record entry Clear entry Complete this question by entering your answers in the tabs below. Required 1. Required 2 Required 3 Prepare a statement of retained earnings for the current year ended December 31. (Amounts to be deducted should be indicated by a minus sign.) KOHLER CORPORATION Statement of Retained Earnings For Current Year Ended December 31 < 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 balance sheet as of December 31 of the current year. KOHLER CORPORATION Stockholders' Equity Section of the Balance Sheet December 31 Total contributed capital Total stockholders' equity < Required 2