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,

45,000 shares issued and outstanding$675,000Paid-in capital in excess of par value, common stock70,000Retained earnings370,000Total stockholders' equity$1,115,000

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

Jan.1Purchased 4,000 shares of its own stock at $15 cash per share.Jan.5Directors declared a $4 per share cash dividend payable on February 28 to the February 5 stockholders of record.Feb.28Paid the dividend declared on January 5.July6Sold 1,500 of its treasury shares at $19 cash per share.Aug.22Sold 2,500 of its treasury shares at $12 cash per share.Sept.5Directors declared a $4 per share cash dividend payable on October 28 to the September 25 stockholders of record.Oct.28Paid the dividend declared on September 5.Dec.31Closed the $428,000 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 company's balance sheet as of December 31, 201