Problem 11-2A Cash dividends, treasury stock, and statement of retained earnings LO C3, P2, P3

[The following information applies to the questions displayed below.]

Kohler Corporation reports the following components of stockholders equity on December 31, 2015:

Common stock$15 par value, 100,000 shares authorized, 45,000 shares issued and outstanding	$	675,000
Paid-in capital in excess of par value, common stock		80,000
Retained earnings		430,000
Total stockholders equity	$	1,185,000

In year 2016, the following transactions affected its stockholders equity accounts.
Jan.	1		Purchased 5,000 shares of its own stock at $20 cash per share.
Jan.	5		Directors declared a $6 per share cash dividend payable on Feb. 28 to the Feb. 5 stockholders of record.
Feb.	28		Paid the dividend declared on January 5.
July	6		Sold 1,875 of its treasury shares at $24 cash per share.
Aug.	22		Sold 3,125 of its treasury shares at $17 cash per share.
Sept.	5		Directors declared a $6 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 $428,000 credit balance (from net income) in the Income Summary account to Retained Earnings.

Problem 11-2A Part 1

Required:

1.

Prepare journal entries to record each of these transactions for 2016.

Problem 11-2A Part 2

2.	Prepare a statement of retained earnings for the year ended December 31, 2016. (Amounts to be deducted should be indicated by a minus sign.)

Problem 11-2A Part 3

3.	Prepare the stockholders' equity section of the companys balance sheet as of December 31, 2016.