Use the U-bolts to attach the axle (the threaded rod) to the underside of a piece of 2x4 about as long as your kayak is wide at the point where you plan to strap it to the dolly (maybe a couple of feet forward of the stern). Thread a locking nut onto each end of the axle (flat sides out) and run them up near the ends of the 2x4. Put the wheels on the axle (one on each end!) and secure them with the wing nuts. Attach a conveniently sized piece of plywood to the top of the 2x4 (with glue/screws/etc.) to make a platform for the kayak to rest on. You can custom fit this to the bottom of your kayak with foam, scraps of wood and carpeting, or whatever suits your fancy. Drill a couple of holes in the plywood platform at the front and back of both sides, to use to hook the stretch cords to.
Use reasonable care when putting the stretch cords on over the stern of the kayak: stretch cords can always slip or break, possibly causing personal imjury. Don't hold your face (or other vulnerable body parts) over them as you stretch them. Inspect your shock cords from time to time: mine have lasted a year but need replacing now.
This thing could be built even more cheaply if you have some old tricycle or lawnmower wheels and axles lying around. It may not be beautiful, but it works fine and saves me money to spend on more mission-critical items such as a good PFD, sprayskirt, etc..