Kohler Corporation reports the following components of stockholders' equity at December 31 of the prior year. Common stock-$20 par value, 100,000 shares authorized, 45,000 shares issued and outstanding Paid-in capital in excess of par value, common stock Retained earnings Total stockholders' equity During the current year, the following transactions affected its stockholders' equity accounts. January 2 January 5 February 28 July 6 August 22 September 5 October 28 December 31 Required: Purchased 6,000 shares of its own stock at $15 cash per share. $ 900,000 70,000 460,000 $ 1,430,000 Directors declared a $2 per share cash dividend payable on February 28 to the February 5 stockholders of record. Paid the dividend declared on January 5. Sold 3,000 of its treasury shares at $19 cash per share. Sold 3,000 of its treasury shares at $11 cash per share. Directors declared a $2 per share cash dividend payable on October 28 to the September 25 stockholders of record. Paid the dividend declared on September 5. Closed the $428,000 credit balance (from net income) in the Income Summary account to Retained Earnings. 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. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare a statement of retained earnings for the current year ended December 31. Note: Amounts to be deducted should be indicated by a minus sign. KOHLER CORPORATION Statement of Retained Earnings For Current Year Ended December 31 Retained earnings, December 31, prior year $ 460,000 Add: Net income 428,000 Less: Cash dividends declared Retained earnings, December 31, current year $ 888,000 Prepare journal entries to record each of these transactions. View transaction list View journal entry worksheet No Date General Journal Debit Credit 1 January 02 Treasury stock, Common 90,000 Cash 90,000 2 January 05 Retained earnings Common dividend payable. 78,000 78,000 ☑ 3 February 28 Common dividend payable 78,000 Cash 78,000 4 July 06 Cash 57,000 Treasury stock, Common. 45,000 Paid-In capital, Treasury stock 12,000 5 40 August 22 Cash 33,000 Paid-In capital, Treasury stock 12,000 Treasury stock, Common 45,000 6 September 05 Retained earnings 90,000 Common dividend payable. 90,000 ☑ 7 October 28 Common dividend payable 90,000 Cash 90,000 8 December 31 Income summary Retained earnings 428,000 428,000