Problem 11-2A (Algo) Cash dividends, treasury stock, and statement of retained earnings LO C3, P2, P3 Kohler Corporation reports the following components of stockholders equily at December 31 of the prior year: Common stock-\$25 par value, 100,000 shares authorized, 50,000 shares issued and outstanding paid-in capital in excess of par value, common stock Petained earnings Total stockholders' equity \begin{tabular}{r} 51,250,000 \\ 20,000 \\ 430,000 \\ \hline$1,750,000 \\ \hline \end{tabular} During the current year, the following transactions affected its stockholders' equity accounts. January 2 Purchased 5,000 shares of its own stock at $15 cash per share. January 5 Directors declared a $4 per share cash dividend payable on February 28 to the fubruary 5 stockholders af record. February 28 . Paid the dividend declared on January 5. July 6 Sold 2,500 of its treasury shares at $19 eash per share. Aurust 22 Sold 2,500 of its treasury shares at $11 cash per share. Septenber 5 Directors declaced a $4 per share cash dividend payable on October 28 to the septeaber 25 stockholders of record. Detober 28 Pald the dividend declared on 5epteeber 5. Decenber 31 closed the $498,000 credit bolance (from net Incone) in the Incoes Sumary account to Retained Earnings. Required: 1. Prepare joumal entries to record each of these transactions. 2. Prepare a statement of retained earnings for the current year ended December 31. 3. Prepare the stockholders' equity section of the balance sheet as of December 31 of the current yeas