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$900,000Paid-in capital in excess of par value, common stock70,000Retained earnings460,000Total stockholders' equity$1,430,000

In year 2017, the following transactions affected its stockholders' equity accounts.

Jan.1Purchased 5,000 shares of its own stock at $20 cash per share.Jan.5Directors declared a $4 per share cash dividend payable on February 28 to the February 5 stockholders of record.Feb.28Paid the dividend declared on January 5.July6Sold 1,875 of its treasury shares at $24 cash per share.Aug.22Sold 3,125 of its treasury shares at $17 cash per share.Sept.5Directors declared a $4 per share cash dividend payable on October 28 to the September 25 stockholders of record.Oct.28Paid the dividend declared on September 5.Dec.31Closed 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 these transactions for 2017.

2.Complete 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.