Kohler Corporation reports the following components of stockholders equity on December 31, 2013:

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		80,000
Retained earnings		400,000
Total stockholders equity	$	1,855,000

In year 2014, 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 Feb. 28 to the Feb. 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 $368,000 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 2014.

2.

Prepare a statement of retained earnings for the year ended December 31, 2014. (Amounts to be deducted should be indicated by a minus sign.)

3.	Prepare the stockholders' equity section of the companys balance sheet as of December 31, 2014.