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Kohler Corporation reports the following components of stockholders equity at December 31 of the prior year . Common stock$20 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$20 par value, 100,000 shares authorized, 60,000 shares issued and outstanding $ 1,200,000
Paid-in capital in excess of par value, common stock 70,000
Retained earnings 430,000
Total stockholders' equity $ 1,700,000

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

January 2 Purchased 5,000 shares of its own stock at $20 cash per share.
January 5 Directors declared a $2 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 2,500 of its treasury shares at $24 cash per share.
August 22 Sold 2,500 of its treasury shares at $16 cash per share.
September 5 Directors declared a $2 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 $368,000 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.

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