Kohler corporation reports the following components of stockholders’ equity on december 31, 2017. 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 2018, 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 february 28 to the february 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 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.