Problem 11-2A (Algo) Cash dividends, treasury stock, and statement of retained earnings LO C3, P2, Kohler Corporation reports the following components of stockholders' equity at December 31 of the prior year. Common stock-\$15 par value, 100,000 shares authorized, 60,000 shares 1 ssued and outstanding Paid-in capital in excess of par value, comon stock Retained earnings Total stockholder's' equity 5900,00060,000460,000$1,420,090 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 pirectors 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 1 ts treasury shares at $24 cash per share. August 22 sold 2,500 of its treasury shares at $16 cash per share. september 5 oirectors declared a \$4 per share cash dividend payable on october 20 to the september 25 stockholders af record. october 28 paid the dividend declared on september 5. December 31 closed the $388,000 credit balance (from net incone) in the incame summary account to Retained Earnings. Required: 1. Prepare journal entries to record each of these transoctions 2. Prepare a statement of retained earnings for the current year ended December 31 3. Prepare the stockholders' equity section of the baiance sheet as of December 31 of the current year