Problem $11-2$A $($Algo$)$ Cash dividends, treasury stock, and statement of retained earnings LO C$3,$ P$2,$ P$3$

Kohler Corporation reports the following components of stockholders' equity at December $31$ of the prior year.

common stock$-$$$10$ par value, $100,000$ shares authorized, $50,000$ shares issued and outstanding

paid$-$in capital in excess of par value, common stock

Retained earnings

Total stockholders' equity

During the current year, the following transactions affected its stockholders' equity accounts.

January $2$ Purchased $5,000$ shares of its own stock at $$20$ cash per share.

January $5$ Directors declared a $$4$ per share cash dividend payable on February $28$ to the February $5$ stockholders of record.

February $28$ Paid the dividend declared on January $5.$

July $6$ sold $2,500$ of its treasury shares at $$24$ cash per share.

August $22$ Sold $2,500$ of its treasury shares at $$16$ cash per share.

September $5$ Directors declared a $$4$ per share cash dividend payable on october $28$ to the september $25$ stockholders of record.

October $28$ Paid the dividend declared on september $5.$

December $31$ Closed the $$388,000$ credit balance $($from net income$)$ in the Income summary account to Retained Earnings.

Required:

Prepare journal entries to record each of these transactions.

Prepare a statement of retained earnings for the current year ended December $31.$

Prepare the stockholders' equity section of the balance sheet as of December $31$ of the current year.

Complete this question by entering your answers in the tabs below.

Required $1$

Required $2$

Required $3$

Prepare a statement of retained earnings for the current year ended December $31.$

Note: Amounts to be deducted should be indicated by a minus sign.

KOHLER CORPORATION

Statement of Retained Earnings

For Current Year Ended December $31$