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Kohler Corporation reports the following components of stockholders' equity at December 31 of the prior year. Common stock- $15 par value, 100,000 shares authorized, 55,000 shares issued and outstanding Paid-in capital in excess of par value, common stock Retained earnings Total stockholders' equity \begin{tabular}{r} $825,000 \\ 80,000 \\ 430,000 \\ \hline$1,335,000 \\ \hline \end{tabular} During the current year, the following transactions affected its stockholders' equity accounts. January 2 Purchased 5,000 shares of its own stock at $20 cash per share. January 5 Directors declared a $2 per share cash dividend payable on February 28 to the February 5 stockhotders of record. February 28 Paid the dividend declared on January 5. Juty 6 Sold 2,500 of its treasury shares at $24 cash per share. August 22 Sold 2,500 of its treasury shares at $16 cash per share. September 5 Directors declared a $2 per share cash dividend payable on October 28 to the Septenber 25 stockholders o record. October 28 Paid the dividend declared on September 5. December 31 Closed the $428,000 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 current year ended December 31. 3. Prepare the stockholders' equity section of the balance sheet as of December 31 of the current year. Record the purchase of 5,000 shares of its own common stock for $20 cash per share. Record the declaration of a cash dividend of $2 per share. Record the payment of the cash dividend. Record the reissue of 2,500 shares of the treasury stock for $24 cash per share. Record the reissue of 2,500 shares of the treasury stock for $16 cash per share. Record the declaration of a cash dividend of $2 per share. Note : = journal entry has been entered Record the reissue of 2,500 shares of the treasury stock for $24 cash per share. Record the reissue of 2,500 shares of the treasury stock for $16 cash per share. Record the declaration of a cash dividend of $2 per share. Record the payment of the cash dividend. Record the entry to close the $428,000 credit balance (from net income) in the Income Summary account to Retained Earnings. Note : = journal entry has been entered KOHLER CORPORATION Statement of Retained Earnings For Current Year Ended December 31 \begin{tabular}{|l|l|} \hline Retained earnings, December 31, prior year & $440,000 \\ \hline Add: Net income & \\ \hline Less: Cash dividends declared & \\ \hline Retained earnings, December 31, current year & $430,000 \\ \hline \end{tabular} KOHLER CORPORATION Stockholders' Equity Section of the Balance Sheet

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