Kohler Corporation reports the following components ofstockholders’ equity on December 31, 2016: Common stock—$20 parvalue, 100,000 shares authorized, 55,000 shares issued andoutstanding $ 1,100,000 Paid-in capital in excess of par value,common stock 70,000 Retained earnings 400,000 Total stockholders'equity $ 1,570,000 In year 2017, the following transactionsaffected its stockholders’ equity accounts. Jan. 1 Purchased 4,000shares of its own stock at $20 cash per share. Jan. 5 Directorsdeclared a $4 per share cash dividend payable on February 28 to theFebruary 5 stockholders of record. Feb. 28 Paid the dividenddeclared on January 5. July 6 Sold 1,500 of its treasury shares at$24 cash per share. Aug. 22 Sold 2,500 of its treasury shares at$17 cash per share. Sept. 5 Directors declared a $4 per share cashdividend payable on October 28 to the September 25 stockholders ofrecord. Oct. 28 Paid the dividend declared on September 5. Dec. 31Closed the $368,000 credit balance (from net income) in the IncomeSummary account to Retained Earnings.

Required: 1. Prepare journal entries to record each of thesetransactions for 2017.

2. Prepare a statement of retained earnings for the year endedDecember 31, 2017.

3. Prepare the stockholders' equity section of the company’sbalance sheet as of December 31, 2017.