[The following information applies to the questions displayed below.]

Kohler Corporation reports the following components of stockholders equity on December 31, 2015:

Common stock$15 par value, 100,000 shares authorized, 45,000 shares issued and outstanding	$	675,000
Paid-in capital in excess of par value, common stock		80,000
Retained earnings		430,000
Total stockholders equity	$	1,185,000

In year 2016, the following transactions affected its stockholders equity accounts.

Jan.

1

Purchased 4,500 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 Feb. 5 stockholders of record.

Feb.

28

Paid the dividend declared on January 5.

July

6

Sold 1,688 of its treasury shares at $24 cash per share.

Aug.

22

Sold 2,812 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 2016.

	A	B	C	D
	Date	General Journal	Debit	Credit
1	Jan 01	Treasury stock, Common	90,000
2
3	Jan 05	Retained earnings
4
5	Feb 28	Common dividend payable
6
7	Jul 06	Cash
8
9	Aug 22	Cash
10
11	Sep 05	Retained earnings
12
13	Oct 28	Common dividend payable
14
15	Dec 31	Income summary	388,000

2.

Prepare a statement of retained earnings for the year ended December 31, 2016. (Amounts to be deducted should be indicated by a minus sign.)

KOHLER CORPORATION
Statement of Retained Earnings
For Year Ended December 31, 2016
Retained earnings, Dec. 31, 2015	$430,000
Add: Net income
	430,000
Less: Cash dividends declared
Less: Treasury stock reissuances
Retained earnings, Dec. 31, 2016	$430,000

3.Prepare the stockholders' equity section of the companys balance sheet as of December 31, 2016.

KOHLER CORPORATION
Stockholders' Equity Section of the Balance Sheet
December 31, 2016
Common stock - $15 par value
Paid-in capital in excess of par value, common stock
Total contributed capital	0
Retained earnings
Total stockholders' equity	$0

PLEASE CALCULATE EACH SECTION