CED Corporation reported stockholders' equity on December 31, 2021 as follows:

Common stock, $5 par value, 1,000,000 shares authorized, 300,000 shares issued	$1,500,000
Additional paid-in capital, common stock	500,000
Retained earnings	2,000,000

The following selected transactions occurred during 2021:

Feb. 14	The board of directors declared a 5% stock dividend to stockholders of record on March 1, payable March 14. The stock was selling for $9 per share on March 1.
Mar. 14	Paid the stock dividend.
June 1	A cash dividend of $0.20 per share was declared by the board of directors to stockholders of record on June 20, payable June 30.
June 30	Paid the cash dividend.
Dec.1	Borrowed $45,000 cash from a local bank with a 60-day, 9% note payable
Dec.31	Record the accrued interest expense.

During 2021, CED Corporation earned net income of $900,000.

a. Prepare the journal entries to record the above transactions.

b, What is the amount of retained earnings as of December 31, 2021?