Kohler Corporation reports the following components of stockholders’ equity on December 31, 2017. Common stock—$25 par...

Kohler Corporation reports the following components of stockholders’ equity on December 31, 2017.


Common stock—$25 par value, 100,000 shares authorized, 55,000 shares issued and outstanding	$	1,375,000
Paid-in capital in excess of par value, common stock		70,000
Retained earnings		400,000
Total stockholders' equity	$	1,845,000

In year 2018, the following transactions affected its stockholders’ equity accounts.

Jan.	1	Purchased 5,500 shares of its own stock at $20 cash per share.
Jan.	5	Directors declared a $2 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 2,063 of its treasury shares at $24 cash per share.
Aug.	22	Sold 3,437 of its treasury shares at $17 cash per share.
Sept.	5	Directors declared a $2 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 $368,000 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.

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