Problem 13-2A (Static) Cash dividends, treasury stock, and statement of retained earnings LO C3, P2, P3 Kohler Corporation reports 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, common stock Retained earnings Total stockholders' equity During the current year, the following transactions affected its stockholders' equity accounts. January 2 Purchased 4,000 shares of its own stock at $20 cash per share. January 5 February 28 July 6 August 22 September 5 October 28 $ 400,000 60,000 270,000 $ 730,000 Directors declared a $2 per share cash dividend payable on February 28 to the February 5 stockholders of record. Paid the dividend declared on January 5. Sold 2,000 of its treasury shares at $24 cash per share. Sold 2,000 of its treasury shares at $16 cash per share. Directors declared a $2 per share cash dividend payable on October 28 to the September 25 stockholders of record. 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. View transaction list Journal entry worksheet < 1 2 3 4 5 10 6 7 8 Record the reissue of 2,000 shares of the treasury stock for $16 cast per share. Note: Enter debits before credits. Date August 22 General Journal Debit Credit Record entry Clear entry Required 1 View general journal Required 2 > Journal entry worksheet < 1 2 3 4 5 6 7 8 Record the declaration of a cash dividend of $2 per share. Note: Enter debits before credits. Date September 05 General Journal Debit Credit Record entry Clear entry View general journal Required 1 Required 2 > Journal entry worksheet < 1 2 3 4 5 6 7 8 Record the payment of the cash dividend. Note: Enter debits before credits. Date October 28 General Journal Debit Credit Record entry Clear entry Required 1 View general journal Required 2 > Journal entry worksheet 1 2 3 4 5 6 7 8 Record the entry to close the $388,000 credit balance (from net income) in the Income Summary account to Retained Earnings. Note: Enter debits before credits. Date December 31 General Journal Debit Credit Record entry Clear entry View general journal Required 1 Required 2 >