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

Common stock$20 par value, 100,000 shares authorized, 50,000 shares issued and outstanding	$	1,000,000
Paid-in capital in excess of par value, common stock		80,000
Retained earnings		400,000
Total stockholders' equity	$	1,480,000

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

Jan.		2		Purchased 6,000 shares of its own stock at $20 cash per share.
Jan.		5		Directors declared a $4 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 2,250 of its treasury shares at $24 cash per share.
Aug.		22		Sold 3,750 of its treasury shares at $17 cash per share.
Sept.		5		Directors declared a $4 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 $368,000 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.

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Required 1

Journal entry worksheet 1

• Record the purchase of 6,000 shares of its own common stock for $20 cash per share.

	Date General Journal Debit Credit Jan 02

Journal entry worksheet 2

Record the declaration of a cash dividend of $4 per share.

	Date General Journal Debit Credit Jan 05

Journal entry worksheet 3

• Record the payment of the cash dividend.

	Date General Journal Debit Credit Feb 28

Journal entry worksheet 4

• Record the reissue of 2,250 shares of the treasury stock for $24 cash per share.

	Date General Journal Debit Credit Jul 06

Journal entry worksheet 5

• Record the reissue of 3,750 shares of the treasury stock for $17 cash per share.

	Date General Journal Debit Credit Aug 22

Journal entry worksheet 6

• Record the declaration of a cash dividend of $4 per share.

	Date General Journal Debit Credit Sep 05

Journal entry worksheet 7

• Record the payment of the cash dividend.

	Date General Journal Debit Credit Oct 28

Journal entry worksheet 8

• Record the entry to close the $368,000 credit balance (from net income) in the Income Summary account to Retained Earnings.

	Date General Journal Debit Credit Dec 31

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Required 2

Prepare a statement of retained earnings for the year ended December 31, 2019. (Amounts to be deducted should be indicated by a minus sign.)

	KOHLER CORPORATION Statement of Retained Earnings For Year Ended December 31, 2019 0 $0

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Required 3

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

	KOHLER CORPORATION Stockholders' Equity Section of the Balance Sheet December 31, 2019 Total contributed capital Total stockholders' equity $

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