Kohler Corporation reports the following components of stockholders equity on December 31, of the prior year:

Common stock$25 par value, 100,000 shares authorized, 55,000 shares issued and outstanding	$	1,375,000
Paid-in capital in excess of par value, common stock		60,000
Retained earnings		400,000
Total stockholders' equity	$	1,835,000

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

Jan.		1		Purchased 5,000 shares of its own stock at $25 cash per share.
Jan.		5		Directors declared a $4 per share cash dividend payable on February 28 to the February 5 stockholders of record.
Feb.		28		Paid the dividend declared on January 5.
July		6		Sold 2,500 of its treasury shares at $29 cash per share.
Aug.		22		Sold 2,500 of its treasury shares at $21 cash per share.
Sept.		5		Directors declared a $4 per share cash dividend payable on October 28 to the September 25 stockholders of record.
Oct.		28		Paid the dividend declared on September 5.
Dec.		31		Closed the $408,000 credit balance (from net income) in the Income Summary account to Retained Earnings.

Required:

1. Prepare journal entries to record each of its transactions
2. Prepare statement of retained earnings for the current year ended December 31
3. Prepare stockholder's equity section of the balance sheet as December 31 of current year.