Problem 13-2A 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-$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 70,000 430,000 1,000,000 Total stockholders' equity In year 2017, the following transactions affected its stockholders' equity accounts. 1 Purchased 4,000 shares of its own stock at $25 cash per share. 5 Directors declared a $4 per share cash dividend payable on 28 to the February 5 stockholders off record. Jan. Jan. February Feb. 28 Paid the dividend declared on January 5. 6 Sold 1.500 of its treasury shares at $29 cash per share. July Aug. 22 Sold 2,500 of its treasury shares at $22 Sept. 5 Directors declared a $4 per share cash dividend payable on October ash per share. 28 to the September 25 stockholders of record. 28 Paid the dividend declared on September 5. Oct. Dec. 31 Closed 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, 2017