Kohler Corporation reports the following components of stockholders' equity at December 31 of the prior year. Common stock-$10 par value, 100,000 shares authorized, 40,000 shares issued and outstanding Paid-in capital in excess of par value, common stock Retained earnings Total stockholders' equity $ 400,000 60,000 270,000 $ 730,000 During the current year, the following transactions affected its stockholders' equity accounts. January 2 January 5 February 28 July 6 August 22 September 5 October 28 December 31 Purchased 4,000 shares of its own stock at $20 cash per share. Directors declared a $2 per share cash dividend payable on February 28 to the February 5 stockholders of record. Paid the dividend declared on January 5. Sold 2,000 of its treasury shares at $24 cash per share. Sold 2,000 of its treasury shares at $16 cash per share. Directors declared a $2 per share cash dividend payable on October 28 to the September 25 stockholders of record. Paid the dividend declared on September 5. 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. Required 1 Required 2 Required 3 Prepare journal entries to record each of these transactions. View transaction list Journal entry worksheet 1 2 3 4 5 6 7 8 Record the purchase of 4,000 shares of its own common stock for $20 cash per share. Note: Enter debits before credits. Debit Credit Date General Journal January 02 Treasury stock, Common Cash 80,000 80,000 Record entry Clear entry View general journal Required 1 Required 2 Required 3 Prepare journal entries to record each of these transactions. View transaction list Journal entry worksheet 1 2 3 4 5 6 7 8 > Record the declaration of a cash dividend of $2 per share. Note: Enter debits before credits. Debit Credit Date General Journal January 05 Retained earnings Common dividend payable 72,000 72,000 Record entry Clear entry View general journal Required 1 Required 2 Required 3 Prepare journal entries to record each of these transactions. View transaction list Journal entry worksheet 2 3 5 6 7 8 > Record the payment of the cash dividend. Note: Enter debits before credits. Date General Journal Debit Credit 72,000 February 28 Common dividend payable Cash 72,000 Record entry Clear entry View general journal Required 1 Required 2 Required 3 Prepare journal entries to record each of these transactions. View transaction list Journal entry worksheet Record the reissue of 2,000 shares of the treasury stock for $24 cash per share. Note: Enter debits before credits. Date General Journal Credit Debit 36,000 July 06 Cash Treasury stock, Common Paid-in capital, Treasury stock 30,000 6,000 Record entry Clear entry View general journal Required 1 Required 2 Required 3 Prepare journal entries to record each of these transactions. View transaction list Journal entry worksheet 1 2 3 4 5 6 7 8 > Record the reissue of 2,000 shares of the treasury stock for $16 cash per share. Note: Enter debits before credits. Date General Journal Debit Credit 42,500 August 22 Cash Paid-in capital, Treasury stock Retained earnings Treasury stock, Common 6,000 1,500 50,000 Record entry Clear entry View general journal Required 1 Required 2 Required 3 Prepare journal entries to record each of these transactions. View transaction list Journal entry worksheet Record the declaration of a cash dividend of $2 per share. Note: Enter debits before credits. General Journal Debit Credit Date September 05 Cash 80,000 Common dividend payable 80,000 Record entry Clear entry View general journal Required 1 Required 2 Required 3 Prepare journal entries to record each of these transactions. View transaction list Journal entry worksheet