ASSIGNMENT

Kohler Corporation reports the following components of stockholders equity on December 31, 2015

Common stock$20 par value, 100,000 shares authorized, 50,000 shares issued and outstanding	$	1,000,000
Paid-in capital in excess of par value, common stock		70,000
Retained earnings		400,000
Total stockholders equity	$	1,470,000

In year 2016, the following transactions affected its stockholders equity accounts.

Jan.		1		Purchased 5,000 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 Feb. 5 stockholders of record.
Feb.		28		Paid the dividend declared on January 5.
July		6		Sold 1,875 of its treasury shares at $24 cash per share.
Aug.		22		Sold 3,125 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 $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 for 2016.

2. Prepare a statement of retained earnings for the year ended December 31, 2016. (Amounts to be deducted should be indicated by a minus sign.)

3. Prepare the stockholders' equity section of the companys balance sheet as of December 31, 2016.