3. Shaw Corporation reported stockholders' equity on December 31 of the prior year as follows: Common stock, $5 par value, 1,000,000 shares authorized, 500,000 shares issued....... $2,500,000 Paid-in capital in excess of par, common stock... 1,000,000 Retained earnings... 3,000,000 The following selected transactions occurred during the current year: The board of directors declared a 5% stock dividend to stockholders of record Feb. 15 on March 1, payable March 20. The stock was selling for $8 per share. Mar. 9 Distributed the stock dividend. A cash dividend of $0.30 per share was declared by the board of directors to stockholders of record on May 20, payable June 1. Paid the cash dividend. Aug. 20 The board decided to split the stock 4-for-1, effective on September 1. Sept. 1 Stock split 4-for-1. Dec. 31 Earned a net income of $800,000 for the current year. 1. Prepare a statement of retained earnings as of December 31 of the current year. May 1 June 1