Reference no: EM13899326

Kohler Corporation reports the following components of stockholders  equity on December 31, 2013: Common stock $ 10 par value, 100,000 shares authorized, 

40,000 shares issued and outstanding . . . . . . . . . . . . . . . . . . . . . . $ 400,000 
Paid in capital in excess of par value, common stock . . . . . . . . . 60,000 
Retained earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 270,000 
Total stockholders  equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 730,000
In year 2014, the following transactions affected its stockholders  equity accounts. 
Jan. 1 Purchased 4,000 shares of its own stock at $ 20 cash per share. Jan. 5 Directors declared a $ 2 per share cash dividend payable on Feb. 28 to the Feb. 5 stockholders of record. 
Feb. 28 Paid the dividend declared 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 $ 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 $ 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 2014. 
2. Prepare a statement of retained earnings for the year ended December 31, 2014. 
3. Prepare the stockholders  equity section of the company s balance sheet as of December 31, 2014.