KohlerCorporation reports the following components of stockholders equity on December 31, 2015:

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		430,000
Total stockholders equity	$	1,390,000

Inyear 2016, the following transactions affected its stockholders equity accounts.

Jan.

1

Purchased 4,500 shares of its own stock at $15 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 $19 cash per share.

Aug.

22

Sold 2,812 of its treasury shares at $12 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 $408,000credit balance(from net income) in the Income Summaryaccountto Retained Earnings.

1.

Prepare journal entries to record each of these transactions for 2016.

2.	Prepare a statement of retained earnings for the year ended December 31, 2016.(Amounts to be deducted should be indicated by a minus sign.)

3.	Prepare the stockholders' equity section of the companysbalance sheetas of December 31, 2016.