\begin{tabular}{|c|c|c|c|c|c|} \hline 1 & January 02 & Treasury stock, Common & 2 & 110,000 & \\ \hline & & Cash & 2 & & 110,000 \\ \hline \multirow[t]{2}{*}{2} & January 05 & Retained earnings & 2 & 178,000 & \\ \hline & & Common dividend payable & 2 & & 178,000 \\ \hline \multirow[t]{2}{*}{3} & February 28 & Common dividend payable & 2 & 178,000 & \\ \hline & & Cash & 2 & & 178,000 \\ \hline \multirow[t]{3}{*}{4} & July 06 & Cash & 2 & 49,512 & \\ \hline & & Paid-In capital, Treasury stock & 2 & & 8,252 \\ \hline & & Treasury stock, Common & 2 & & 41,260 \\ \hline \multirow[t]{4}{*}{5} & August 22 & Cash & 2 & 58,429 & \\ \hline & & Paid-In capital, Treasury stock & 2 & 6,752 & \\ \hline & & Retained earnings & 2 & 1,684 & \\ \hline & & Treasury stock, Common & 2 & & 68,740 \\ \hline \multirow[t]{2}{*}{6} & September 05 & Retained earnings & 2 & 200,000 & \\ \hline & & Common dividend payable & 2 & & 200,000 \\ \hline \multirow[t]{2}{*}{7} & October 28 & Common dividend payable & 2 & 200,000 & \\ \hline & & Cash & 2 & & 200,000 \\ \hline 8 & December 31 & Income summary & 2 & 388,000 & \\ \hline \end{tabular} Problem 11-2A (Algo) 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, 2019. During 2020 , the following transactions affected its stockholders' equity accounts. January 2 Purchased 5,500 shares of its own stock at $20 cash per share. January 5 Directors declared a $4 per share cash dividend payable on February 28 to the February 5 stockholders of record. February 28 Paid the dividend declared on January 5. July 6 Sold 2,063 of its treasury shares at $24 cash per share. August 22 Sold 3,437 of its treasury shares at $17 cash per share. September 5 Directors declared a $4 per share cash dividend payable on 0ctober 28 to the September 25 stockholders of record. October 28 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 year ended December 31, 2020. 3. Prepare the stockholders' equity section of the company's balance sheet as of December 31, 2020