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Kohler Corporation reports the following components of stockholders' equity on December 31, 2016: Common stock-$20 par value, 100,000 shares authorized, 45,000 shares issued and outstanding

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Kohler Corporation reports the following components of stockholders' equity on December 31, 2016: Common stock-$20 par value, 100,000 shares authorized, 45,000 shares issued and outstanding Paid-in capital in excess of par value, common stock Retained earnings Total stockholders' equity $ 900,000 70,000 430,000 $1,400,000 In year 2017, the following transactions affected its stockholders' equity accounts. Jan. 1 Purchased 5,500 shares of its own stock at $15 cash per share. s Directors declared a $4 per share cash dividend payable on February 28 to the Yebruary 5 stockholders of record. Feb. 28 Paid the dividend declared on January 5. July 6 Sold 2,063 of its treasury shares at $19 cash per share. Aug. 22 Sold 3,437 of its treasury shares at $12 cash per share. Sept. 5 Directors declared a $4 per share cash dividend payable on October 28 to the September 25 stockholders of record. 28 Paid the dividend declared on September 5. 31 closed the $400,000 credit balance (from net income) in the Income Summary account to Retained Earnings. Required: 1. Prepare journal entries to record each of these transactions for 2017. 2. Prepare a statement of retained earnings for the year ended December 31, 2017 3. Prepare the stockholders' equity section of the company's balance sheet as of December 31, 2017 Oct. Dec. Credit No Date Debit 82,500 ces 1 General Journal Treasury stock, Common Cash Jan 01 82,500 2 Jan 05 158,000 Retained earnings Common dividend payable 158,000 3 Feb 28 158,000 Common dividend payable Cash 158,000 4 Jul 06 39,197 Cash Treasury stock, Common Paid In capital, Treasury stock 5 Aug 22 Cash Paid In capital, Treasury stock Retained earnings Treasury stock, Common Sep 05 Retained earnings Common dividend payable 7 Oct 28 Common dividend payable Cash 8 Dec 31 408,000 Income summary Retained earnings 408,000 KOHLER CORPORATION Statement of Retained Earnings For Year Ended December 31, 2017 Retained earnings, Dec. 31, 2016 Add: Net income 0 Less: Cash dividends declared Less: Treasury stock reissuances Retained earnings, Dec. 31, 2017 $ 0 KOHLER CORPORATION Stockholders' Equity Section of the Balance Sheet December 31, 2017 Common stock - $20 par value Paid-in capital in excess of par value, common stock Total contributed capital Retained earnings Total stockholders' equity 0 $ 0

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