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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

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.

Common stock$25 par value, 100,000 shares authorized, 50,000 shares issued and outstanding $ 1,250,000
Paid-in capital in excess of par value, common stock 60,000
Retained earnings 430,000
Total stockholders' equity $ 1,740,000

During 2020, the following transactions affected its stockholders equity accounts.

January 2 Purchased 6,000 shares of its own stock at $25 cash per share.
January 5 Directors 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 2,250 of its treasury shares at $29 cash per share.
August 22 Sold 3,750 of its treasury shares at $22 cash per share.
September 5 Directors declared a $4 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 $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 year ended December 31, 2020.

Prepare the stockholders equity section of the companys balance sheet as of December 31, 2020.

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