Kohler Corporation reports the following components of stockholders' equity at December 31 of the prior year. Comson stock-\$15 par value, 100,000 shares authorized, 45,000 shares issued and outatanding Paid-in capital in excess of par value, cosmon stock. Retained earnings Total stockholders' equity During the current year, the following transactions affected its stockholders' equity accounts. January 2 Purchased 4,000 shares of its own stock at $20 cash por share. January 5 Directors declared a $6 per share cash dividend payable on February 28 to the February 5 stockholders of February 28 Paid the dividend declared on January 5. July 6 sold 2,000 of its treasury shares at $24 cash per share. August 22 sold 2,000 of it treasury shares at $16 cash per phare. Septeaber 5 Directors declared a $6 per share cash dividend payable on october 28 to the September 25 stockholders of Oetober 28 Paid the dividend deelared on september 5 . December 31 Closed the $368,000 credit balance (from net income) in the Incame Surmary 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. Journal entry worksheet 567 Record the declaration of a cash dividend of $6 per share. Note: Enter debits before credits. Journal entry worksheet Note: Enter debits before credits. Journal entry worksheet 1 8 Record the reissue of 2,000 shares of the treasury stock for $24 cash per share. Note: Enter debits before credits. Journal entry worksheet Record the reissue of 2,000 shares of the treasury stock for $16 cash per share. Note: Enter debits before credits. Journal entry worksheet 1 (2) 3 7 Record the declaration of a cash dividend of $6 per share. Note: Enter debits before credits. Journal entry worksheet 1 2 (3) 4 5 Record the payment of the cash dividend. Note: Enter debits before credits. Journal entry worksheet 1 456 Record the entry to close the $368,000 credit balance (from net income) in the Income Summary account to Retained Earnings. Note: Enter debits before credits. KOHLER CORPORATION Statement of Retained Earnings \begin{tabular}{|l|c|} \hline \multicolumn{2}{|c|}{ For Current Year Ended December 31} \\ \hline Retained earnings, December 31, prior year & \\ \hline Add: Net income & \\ \hline Less: Cash dividends declared & 460,000 \\ \hline Retained earnings, December 31, current year & $460,000 \\ \hline \end{tabular} KOHLER CORPORATION Stockholders' Equity Section of the Balance Sheet
