Required

1. Prepare journal entries to record each of these transactions for 2016.

2. Prepare a statement of retained earnings for the year ended December 31,2016

3. Prepare the stockholders' equity section of the company's balance sheet as if Dec 31, 2016.

31. 2015: Kohler Corporation reports the following components of stockholders' equity on December Common stock- $10 par value, 100,000 shares authorized, 40,000 shares issued and outstanding $400,000 60,000 Paid-in capital in excess of par value, common stock 270,000 Retained earnings 730,000 Total stockholders' equity In year 2016, the following transactions affected its stockholders' equity accounts. Jan. I Purchased 4,000 shares of its own stock at $20 cash per share. stockholders Jan. 5 Directors declared a $2 per share cash dividend payable on Feb. 28 to the Feb. 5 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 treasury shares at $17 on 25 Sept. 5 Directors declared a $2 per share cash dividend payable october 28 to the September 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 Re tained Earnings