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, 50,000 shares issued and outstanding	$ 1,000,000
Paid-in capital in excess of par value, common stock	70,000
Retained earnings	400,000
Total stockholders' equity	$ 1,470,000

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

January 2	Purchased 5,000 shares of its own stock at $15 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 $19 cash per share.
August 22	Sold 2,500 of its treasury shares at $11 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 $388,000 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.