Problem 11-2A (Static) Cash dividends, treasury stock, and statement of retained earnings LO C3, P2, P3 Kohler Corporation reporff the following components of stockholders' equity at December 31 of the prior year Common stock $10 par value, 100,000 shares authorized 40,000 shares issued and outstanding Paid-in capital in excess of par value, como stock Retained earnings Total stockholders' equity $.400.000 60,000 270.000 $ 730,000 During the current year, the following transactions affected its stockholders' equity accounts January 2 Purchased 4,000 shares of its own stock at $28 cash per share. January 5 Directors declared a $2 per share cash dividend payable on February 28 to the February 5 stockholders of record, February 28 Paid the dividend declared on January 5. July 6 Sold 2,000 of its treasury shares at $24 cash per share August 22 Sold 2,000 of Its treasury shares at $16 cash per share September 5 Directors declared a $2 per share cash divide payable on October 28 to the September 25 stockholders of record. October 28 Paid the dividend declared on September 5. December 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. 2. Prepare a statement of retained earnings for the current year ended December 31 3. Prepare the stockholders' equity section of the balance sheet as of December 31 of the current year Required 1 Required 2 Required 3 Prepare journal entries to record each of these transactions. View transaction list Journal entry worksheet 2 3 4 5 6 7 8 Record the purchase of 4,000 shares of its own common stock for $20 cash per share. Note: Enter debits before credits. Date General Journal January 02 Credit Debit 80,000 Required 1 Required 2 Required 3 Prepare a statement of retained earnings for the current year ended December 31. (Amounts to be deducted should be indicated by a minus sign.) KOHLER CORPORATION Statement of Retained Earnings For Current Year Ended December 31 S Required 1 Required 2 Required 3 Prepare the stockholders' equity section of the balance sheet as of December 31 of the current year. KOHLER CORPORATION Stockholders' Equity Section of the Balance Sheet December 31 Total contributed capital 0 Total stockholders' equity $ 0