Kohler Corporation reports the following components of stockholders equity at December 31 of the prior year Common stock$15 par value, 100,000 shares authorized, 60,000 shares issued and outstanding $ 900,000 Paid in capital in excess of par value, common stock 70,000 Retained earnings 400,000 Total stockholders' equity $ 1,370,000 During the current year, the following transactions affected its stockholders equity accounts January 2 Purchased 4,000 shares of its own stock at $25 cash per share January 5 Directors declared a $6 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 2,000 of its treasury shares at $29 cash per share August 22 Sold 2,000 of its treasury shares at $21 cash per share September 5 Directors declared a $6 per share cash dividend payable on October 28 to the September 25 stockholders of record October 28 Paid the dividend declared on September 5 December 31 Closed the $428,000 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 No Date General Journal Debit Credit 1 January 02 Treasury stock, Common 100,000 Cash 100,000 2 January 05 Retained earnings Common dividend payable 3 February 28 Common dividend payable Cash 4 July 06 Cash Treasury stock, Common Paid In capital, Treasury stock 5 August 22 Cash Paid In capital, Treasury stock Retained earnings Treasury stock, Common 6 September 05 Retained earnings Common dividend payable 7 October 28 Income summary Retained earnings 8 December 31 Income summary Retained earnings Prepare a statement of retained earnings for the current year ended December 31 (Amounts to be deducted should be indicated by a minus sign ) Prepare the stockholders' equity section of the balance sheet as of December 31 of the current year

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Kohler Corporation reports the following components of stockholders equity at December 31 of the prior year . Common stock$15 par value, 100,000 shares authorized, 60,000

Kohler Corporation reports the following components of stockholders equity at December 31 of the prior year.

Common stock$15 par value, 100,000 shares authorized, 60,000 shares issued and outstanding	$ 900,000
Paid-in capital in excess of par value, common stock	70,000
Retained earnings	400,000
Total stockholders' equity	$ 1,370,000

During the current year, the following transactions affected its stockholders equity accounts.

January 2	Purchased 4,000 shares of its own stock at $25 cash per share.
January 5	Directors declared a $6 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 2,000 of its treasury shares at $29 cash per share.
August 22	Sold 2,000 of its treasury shares at $21 cash per share.
September 5	Directors declared a $6 per share cash dividend payable on October 28 to the September 25 stockholders of record.
October 28	Paid the dividend declared on September 5.
December 31	Closed the $428,000 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.

No	Date	General Journal	Debit	Credit
1	January 02	Treasury stock, Common	100,000
		Cash		100,000

2	January 05	Retained earnings
		Common dividend payable

3	February 28	Common dividend payable
		Cash

4	July 06	Cash
		Treasury stock, Common
		Paid-In capital, Treasury stock

5	August 22	Cash
		Paid-In capital, Treasury stock
		Retained earnings
		Treasury stock, Common

6	September 05	Retained earnings
		Common dividend payable

7	October 28	Income summary
		Retained earnings

8	December 31	Income summary
		Retained earnings

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Prepare a statement of retained earnings for the current year ended December 31 . (Amounts to be deducted should be indicated by a minus sign.) Prepare the stockholders' equity section of the balance sheet as of December 31 of the current year