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	$	900,000
Paid-in capital in excess of par value, common stock		60,000
Retained earnings		400,000
Total stockholders' equity	$	1,360,000

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

Jan.		1		Purchased 4,500 shares of its own stock at $20 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 1,688 of its treasury shares at $24 cash per share.
Aug.		22		Sold 2,812 of its treasury shares at $17 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 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 companys balance sheet as of December 31, 2017.

Journal entry worksheet

• Record the reissue of 1,688 shares of the treasury stock for $24 cash per share.

Note: Enter debits before credits.

Date	General Journal	Debit	Credit
Jul 06	Cash	40,512
	Treasury stock, Common
	Paid-In capital, Treasury stock

Journal entry worksheet

• Record the reissue of 2,812 shares of the treasury stock for $17 cash per share.

Note: Enter debits before credits.

Date	General Journal	Debit	Credit
Aug 22	Cash
	Paid-In capital, Treasury stock

• Record the declaration of a cash dividend of $4 per share.

Note: Enter debits before credits.

Date	General Journal	Debit	Credit
Sep 05	Retained earnings
	Common dividend payable

• Record the payment of the cash dividend.

Note: Enter debits before credits.

Date	General Journal	Debit	Credit
Oct 28	Common dividend payable
	Cash

Prepare a statement of retained earnings for the year ended December 31, 2017. (Amounts to be deducted should be indicated by a minus sign.)

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

Prepare the stockholders' equity section of the companys balance sheet as of December 31, 2017.

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	0
Retained earnings
Total stockholders' equity	$0