Problem 11-2A Cash dividends, treasury stock, and statement of retained earnings LO C3, P2, P3 Kohler Corporation reports the following components of stockholders' equity on December 31, 2016: Common stock-$10 par value, 100,000 shares authorized, $500,000 , 000 50,000 shares issued and outstanding Paid-in capital in excess of par value, common stock Retained earninga 400,000 Total stockholders equity $980,000 In year 2017, the following transactions affected its stockholders' equity accounts. 1 Purchased 5,500 shares of its own stock at $15 cash per share. 5 Directors declared a $4 per share cash dividend payable on February 28 to the February 5 stockholders of record 28 Paid the dividend declared on January 5. J. Jan- Feb. July Aug 6 Sold 2,063 of its treasury shares at $19 cash per share. 22 Sold 3,437 of its treasury shares at $12 cash per share s Directors declared a $4 per share cash dividend payable on October 28 to the September 25 stockholders of Sept. record. 28 Paid the dividend declared on September 5. 31 closed the $388,000 credit balance (from net income) in the Income Summary account to Retained Earnings. Oct. Dec. Required: 1. Prepare journal entries to record each of these transactions for 2017 2. Prepare a statement of retained earnings for the year ended December 31, 2017 3. Prepare the stockholders' equity section of the company's balance sheet as of December 31, 2017 Journal entry worksheet 2 3 5 6 7 8 Record the purchase of 5,500 shares of its own common stock for $15 cash per share, Note: Enter debits before credits. Date General Journal Debit Credit Jan 01 Record entry Clear entry View general journal Prepare a statement of retained earnings for the year ended December 31, 2017. (Ar indicated by a minus sign.) KOHLER CORPORATION Statement of Retained Earnings For Year Ended December 31, 2017 0 $ 0 Required 1 Required 2 Required 3 Prepare the stockholders' equity section of the company's balance sheet as of December 31, 2017 KOHLER CORPORATION Stockholders' Equity Section of the Balance Sheet December 31, 2017 Total contributed capital 0 S Total stockholders' equity C Reauired 2 Pequired a