Chapter 11, Problem 2PA Bookmark Show all steps: OFF Kohler Corporation reports the following components of stockholders' equity on December 31 2016 Common stock-$10 par value, 100,000 shares authorized 40,000 shares issued and outstanding Paid-in capital in excess of par value, common stock..... Retained earnings Total stockholders' equity 60,000 730,000 In year 2017, the following transactions affected its stockholders' equity accounts Jan. Jan. Purchased 4,000 shares of its own stock at $20 cash per share. 5 Directors declared a $2 per share cash dividend payable on February 28 to the February stockholders 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 Sep. 5 Directors declared a $2 per share cash dividend payable on October 28 to the September 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 Retained Earnings. Required 1. Prepare journal entries to record each of these transactions for 2017 2. Prepare a statement of retained earnings for the year ended December 31, 2017 3. Prepare the stockholders' equity section of the company's balance sheet as of December 31 2017 Step-by-step solution