Kohler Corporation reports the following components of stockholders’ equity at December 31 of the prior year.


Common stock—$15 par value, 100,000 shares authorized, 50,000 shares issued and outstanding $ 750,000
Paid-in capital in excess of par value, common stock 70,000
Retained earnings 400,000
Total stockholders' equity $ 1,220,000

During the current year, the following transactions affected its stockholders’ equity accounts.


January 2 Purchased 6,000 shares of its own stock at $20 cash per share.
January 5 Directors declared a $2 per share cash dividend payable on February 28 to the February 5 stockholders of record.
February 28 Paid the dividend declared on January 5.
July 6 Sold 3,000 of its treasury shares at $24 cash per share.
August 22 Sold 3,000 of its treasury shares at $16 cash per share.
September 5 Directors declared a $2 per share cash dividend payable on October 28 to the September 25 stockholders of record.
October 28 Paid the dividend declared on September 5.
December 31 Closed the $428,000 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.