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$15 par value, 100,000 shares authorized, 55,000 shares issued and outstanding	$	825,000
Paid-in capital in excess of par value, common stock		70,000
Retained earnings		430,000
Total stockholders' equity	$	1,325,000

In year 2017, the following transactions affected its stockholders equity accounts.

Jan.		1		Purchased 5,500 shares of its own stock at $20 cash per share.
Jan.		5		Directors declared a $2 per share cash dividend payable on February 28 to the February 5 stockholders of record.
Feb.		28		Paid the dividend declared on January 5.
July		6		Sold 2,063 of its treasury shares at $24 cash per share.
Aug.		22		Sold 3,437 of its treasury shares at $17 cash per share.
Sept.		5		Directors declared a $2 per share cash dividend payable on October 28 to the September 25 stockholders of record.
Oct.		28		Paid the dividend declared on September 5.
Dec.		31		Closed the $388,000 credit balance (from net income) in the Income Summary account to Retained Earnings.

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 companys balance sheet as of December 31, 2017.

Aug 22 Cash 58,429 Paid-ln capital, Treasury stock Retained earnings Treasury stock, Common 8,252 6 Sep 05 Retained earning:s Common dividend payable Oct 28 Common dividend payable Cash 8 Dec 31 Income summary Retained earnings Prepare a statement of retained earnings for the year ended December 31, 2017. (Amounts to be deducted indicated by a minus sign.) KOHLER CORPORATION Statement of Retained Earnings For Year Ended December 31, 2017 Retained earnings, Dec. 31, 2016 Less: Net loss 0 Prepare the stockholders' equity section of the company's balance sheet as of December 31 KOHLER CORPORATION Stockholders' Equity Section of the Balance Sheet December 31, 2017 Common stock - $15 par value Paid-in capital in excess of par value, common stock Total contributed capital Retained earnings Total stockholders' equity