484 Chapter 13 Accounting for Corporations Kohler Corporation reports the following components of stockholders' expuity at December 31 of the prior year. Problem 13-2A Cash dividends, treasury stock, and statement of retained earnings C3 P2 P3 Common stock - $10 per 100.000 shares authorized 40.000 shares sued and outstanding Pald-in capital in excess of par vecommon stock Retained earings Total stockholders' equity $400,000 60,000 270.000 5730,000 During the current year, the following transactions affected its stockholders' equity accounts. Jan 2 Purchased 4,000 shares of its own stock at $20 cash per share. Jan 5 Directors declared a 52 per share cash dividend payable on February 28 to the February 5 stockholders of record, Feb. 28 Paid the dividend declared on January 5. July 6 Sold 2.000 of its treasury shares at $24 cash per share. Aug. 22 Sold 2,000 of its treasury shares at $16 cash per share. Sep 5 Directors declared a $2 per share cash dividend payable on October 28 to the September 25 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 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