|Kohler Corporation reports the following components of stockholders’ equity on December 31, 2015:|
Common stock—$20 par value, 100,000 shares authorized, 45,000 shares issued and outstanding
|Paid-in capital in excess of par value, common stock||70,000|
|Total stockholders’ equity||$||1,340,000|
|In year 2016, the following transactions affected its stockholders’ equity accounts.|
|Jan.||1||Purchased 4,500 shares of its own stock at $20 cash per share.|
Directors declared a $4 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 1,688 of its treasury shares at $24 cash per share.|
|Aug.||22||Sold 2,812 of its treasury shares at $17 cash per share.|
Directors declared a $4 per share cash dividend payable on October 28 to the September 25 stockholders of record.
|Oct.||28||Paid the dividend declared on September 5.|
Closed the $368,000 credit balance (from net income) in the Income Summary account to Retained Earnings.
Prepare a statement of retained earnings for the year ended December 31, 2016. (Amounts to be deducted should be indicated by a minus sign.)
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