2. Kohler Corporation reports the following components of stockholders equity on

December 31, 2013:

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

In 2014, the following transactions affected its stockholders equity accounts.

Jan. 1: 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 Feb. 28 to the

stockholder 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.

Sept. 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 for 2014. 5pts. for

each entry.

2. Prepare a statement of retained earnings for the year ended December 31, 2014.

10 pts.

3. Prepare the stockholders equity section of the companys balance sheet as of

December 31, 2014. 10 pts.