Sydney Incorporated has 75,000 shares of $2 cumulative preferred shares outstanding as well as 110,000 common shares. There are no dividends in arrears on the preferred shares. The following transactions were reported during May 2020:

May 1 Declared the required dividend on the preferred shares and a $0.23 per share dividend on the common shares.

14 The date of record for the dividend declared on May 1.

28 Paid the dividend declared on May 1.

31 Closed the Income Summary account. Net income for the year was $225,000.

Required

1. Prepare journal entries to record the above transactions. No explanations are required.

2. Assuming the balance of Retained Earnings on June 1, 2019, was $52,100, determine the balance of the account on May 31, 2020.