Kohler Corporation reports the following components of stockholders equity on December 31, 2016:

Common stock$10 par value, 100,000 shares authorized,

40,000 shares issued and outstanding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $400,000

Paid-in capital in excess of par value, common stock . . . . . . . . . . . . . . . . . . . . . . . . 60,000

Retained earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 270,000

Total stockholders equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $730,000

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

Jan. 1 Purchased 4,000 shares of its own stock at $20 cash per share

Jan. 5 Directors declared a $2 per share cash dividend payable on February 28 to the February 5 stockholders of record.

July 6 Sold 1,500 of its treasury shares at $24 cash per share.

Aug. 22 Sold 2,500 of its treasury shares at $17 cash per share.

Sep. 5 Directors declared a $2 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 $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 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.