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

Common stock$25 par value, 100,000 shares authorized, 45,000 shares issued and outstanding$ 1,125,000Paid-in capital in excess of par value, common stock60,000Retained earnings430,000Total stockholders' equity$ 1,615,000

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

January 2Purchased 5,000 shares of its own stock at $20 cash per share.January 5Directors declared a $2 per share cash dividend payable on February 28 to the February 5 stockholders of record.February 28Paid the dividend declared on January 5.July 6Sold 2,500 of its treasury shares at $24 cash per share.August 22Sold 2,500 of its treasury shares at $16 cash per share.September 5Directors declared a $2 per share cash dividend payable on October 28 to the September 25 stockholders of record.October 28Paid the dividend declared on September 5.December 31Closed 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.