1 Kohler Corporation reports the following components of stockholders' equity at December 31 of the prior year.Common stock-$10 par value, 100,000 shares authorized, 45,000 shares issued and outstandingPaid-in capital in excess of par value, common stockRetained earningsTotal stockholders' equityDuring the current year, the following transactions affected its stockholders' equity accounts.January 2 Purchased 4,000 shares of its own stock at $15 cash per share.January 5 Directors declared a $2 per share cash dividend payable on February 28 to the February 5 stockholders ofrecord.February 28July 6August 22September 5$ 450,00080,000400,000$ 930,000Paid the dividend declared on January 5.Sold 2,000 of its treasury shares at $19 cash per share.Sold 2,000 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 ofrecord.October 28 Paid the dividend declared on September 5.December 31 Closed the $408,000 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.

The dividend is declared to the shareholders from the retained earnings of the business. The net…

Kohler Corporation reports the following components of stockholders' equity at December 31 of the prior year. Common stock-$10 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 $ 450,000 80,000 400,000 $ 930,000 During the current year, the following transactions affected its stockholders' equity accounts. January 2 Purchased 4,000 shares of its own stock at $15 cash per share. January 5 Directors declared a $2 per share cash dividend payable on February 28 to the February 5 stockholders c record. February 28 Paid the dividend declared on January 5.