Kohler Corporation reports the following components of stockholders equity at December 31, 2018.

Common stock$20 par value, 100,000 shares authorized, 45,000 shares issued and outstanding $ 900,000 Paid-in capital in excess of par value, common stock 80,000 Retained earnings 460,000 Total stockholders' equity $ 1,440,000

During 2019, the following transactions affected its stockholders equity accounts.

Jan. 2 Purchased 5,500 shares of its own stock at $25 cash per share.

Jan. 5 Directors declared a $6 per share cash dividend payable on February 28 to the February 5 stockholders of record.

Feb. 28 Paid the dividend declared on January 5.

July 6 Sold 2,063 of its treasury shares at $29 cash per share.

Aug. 22 Sold 3,437 of its treasury shares at $22 cash per share.

Sept. 5 Directors declared a $6 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.

2. Prepare a statement of retained earnings for the year ended December 31, 2019.

3. Prepare the stockholders equity section of the companys balance sheet as of December 31, 2019.