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, $55,000$ shares issued and outstanding $ $550,000$

Paid$-$in capital in excess of par value, common stock $80,000$

Retained earnings $460,000$

Total stockholders' equity $ $1,090,000$

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 $$6$ 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 $$6$ 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 $$428,000$ 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.

Prepare journal entries to record each of these transactions.

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.

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