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-$10 par value, 100,000 shares authorized, 50,000 shares issued and outstanding Paid-in capital in excess of par value, common stock Retained earnings $ 500,000 80,000 430,000 Total stockholders' equity $1,010,000 In year 2016, the following transactions affected its stockholders' equity accounts. Jan. 1 Purchased 6,000 shares of its own stock at $20 cash per share. Jan. 5 Directors declared a $4 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 2,250 of its treasury shares at $24 cash per share. Aug. 22 Sold 3,750 of its treasury shares at $17 cash per share. Sept. 5 Directors declared a $4 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. No Date General Journal Credit Debit 120,000 Jan 01 Treasury stock, Common Cash 120,000 Jan 05 176,000 Retained earnings Common dividend payable 176,000 Feb 28 Common dividend payable 176,000 Cash 176,000 Jul 06 Cash 54,000 45,000 Treasury stock, Common Paid-In capital, Treasury stock 9,000 Aug 22 Cash Paid-In capital, Treasury stock Retained earnings Treasury stock, Common 63,750 9,000 2,250 75,000 Sep 05 Retained earnings Common dividend payable Oct 28 Common dividend payable Cash Dec 31 Income summary Retained earnings 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.) KOHLER CORPORATION Statement of Retained Earnings For Year Ended December 31, 2016 $ 0 Problem 11-2A Part 3 3. Prepare the stockholders' equity section of the company's balance sheet as of December 31, 2016. KOHLER CORPORATION Stockholders' Equity Section of the Balance Sheet December 31, 2016 Total contributed capital Total stockholders' equity 0