Problem 11-2A Cash dividends, treasury stock, and statement of retained earnings LO C3, P2, P:3 Kohler Corporation reports the following components of stockholders' equity on December 31, 2017. Common stock-$20 par value, 100,000 shares authorized, 60,000 shares issued and outstanding Paid-in capital in excess of par value, common stock Retained earnings Total stockholders' equity $1,200,000 60,000 370,000 $1,630,000 In year 2018, the following transactions affected its stockholders' equity accounts Jan. 1 Purchased 4,500 shares of its own stock at $25 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 1,688 of its treasury shares at $29 cash per share Aug. 22 Sold 2,812 of its treasury shares at $22 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 $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 2018. 2. Prepare a statement of retained earnings for the year ended December 31, 2018. 3. Prepare the stockholders' equity section of the company's balance sheet as of December 31, 2018