Problem $13-2$A Cash dividends, treasury stock, and statement of retained earnings $$ P$2$

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, $40,000$ 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.

Jan. $2$ 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.

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

July $6$ Sold $2,000$ of its treasury shares at $$24$ cash per share.

Aug. $22$ Sold $2,000$ of its treasury shares at $$16$ 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

Prepare journal entries to record each of these transactions.

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