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 Lasued 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. $400,000 60,000 270,000 $730,000 January 5 Directors declared a $2 per share cash dividend payable on February 28 to the February 5 stockholders of record. February 28 July 6 August 22 September 5 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. October 26 Paid the dividend declared on September 5. December 31 Closed the $380,000 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 31.1 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. Required 1 Required 2 Required 3 few transaction list view journal entry worksheet No Date General Journal Debit Credit 1 January 02 Treasury stock, Common 80,000 Cash 2 January 05 Retained earnings Common dividend payable 3 February 28 Common dividend payable Cash 4 July 06 Cash Treasury stock, Common Paid-in capital, Treasury stock 80,000 72,000 72,000 72,000 72,000 5 August 22 Cash Paid-in capital, Treasury stock 6 September 05 Retained earnings. 80,000 Common dividend payable: 80,000 7 October 28 Common dividend payable 80,000 Cash 80,000 8 December 31 Income summary Retained earnings 388,000 388,000 Required 1 Required 2 Required 3 Prepare a statement of retained earnings for the current year ended December 31. (Amounts to 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 $ 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 balance sheet as of December 31 of the curre KOHLER CORPORATION Stockholders' Equity Section of the Balance Sheet December 31 Common stock - $10 par value $ 400,000 Paid-in capital in excess of par value, common stock 60,000 Total contributed capital 460,000 Retained earnings Total stockholders' equity $ 460,000 < Required 2 Required 3>