Question #2 (25 points) Kohler Corporation reports the following components of stockholders equity on December 31, 2013: 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 ................. $400,000 60,000 270,000 $730,000 ............. . ......... In 2014, the following transactions affected its stockholders' equity accounts. Jan. 1: Purchased 4,000 shares of its own stock at $20 cash per share. Jan. 5: Directors declared a $2 per share cash dividend payable on Feb. 28 to the stockholder of record. Feb 28: Paid the dividend declared on January 5. July 6: Sold 1,500 of its treasury shares at $24 cash per share. Aug. 22: Sold 2,500 of its treasury shares at $17 cash per share. Sept. 5: Directors declared a $2 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. Required: 1. Prepare journal entries to record each of these transactions for 2014. 2. Prepare a statement of retained earnings for the year ended December 31, 2014 3. Prepare the stockholders' equity section of the company's balance sheet as of December 31, 2014