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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' equity

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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' equity at December 31, 2019. During 2020, the following transactions affected its stockholders' equity accounts. January ? Purchased 5 , abe shares of its own steck at $20 eash per share, January 5 Directors declared a $4 per share cash dividend payable on February 28 to the february 5 stockhotders of record. February 28 Paid the dividend declared on January 5. Juty 6 Sold 1,875 of its treasury shares at $24 cash per share. Aunust 22 Sold 3,125 of its treasury shares at $17 cash per share. Septenber 5 Directors declared a 54 per share cash dividend payable on 0ctober 28 to the Septenber 25 stockholders of record. Dctober 28 Paid the dividend declared on Septenber 5. Decenber 31 closed the $488,000 credit batance (from net incone) in the Incone sunnary account to Retained Earnings. Required: 1. Prepare journal entries to record each of these transactions. 2. Prepare a statement of retained earnings for the year ended December 31, 2020. 3. Prepare the stockholder's' equity section of the company's balance sheet as of December 31,2020 Record the purchase of 5,000 shares of its own common stock for $20 cash per share. Note: Enter debits before credits. Record the declaration of a cash dividend of $4 per share. Note: Enter debits before credits. Record the payment of the cash dividend. Note: Enter debits before credits. Record the reissue of 1,875 shares of the treasury stock for $24 cash per share. Note: Enter debits before credits. Record the reissue of 3,125 shares of the treasury stock for $17 cash per share. Note: Enter debits before credits. Journal entry worksheet 2 7 Record the declaration of a cash dividend of $4 per share. Note: Enter debits before credits. Journal entry worksheet 12345 Record the payment of the cash dividend. Note: Enter debits before credits. Journal entry worksheet Record the entry to close the $408,000 credit balance (from net income) in the Income Summary account to Retained Earnings. Note: Enter debits before credits. Prepare a statement of retained earnings for the year ended December 31,2020. Note: Amounts to be deducted should be indicated by a minus sign. Prepare the stockholders' equity section of the company's balance sheet as of December 31,2020

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