On April $1,20$x$3,$ Kelly Corporation began operations and authorized $100,000$ shares of $$5$ par value common stock. The company engaged in the following transactions:

April $1$ Issued $20,000$ shares of common stock for $$200,000.$

April $15$ Issued $10,000$ shares of common stock for $$125,000.$

May $12$ Purchased $2,500$ shares of common stock for $$75,000.$

June $30$ The board of directors declared a $$0\mathrm{.}20$ per share cash dividend to be paid on July $15$ to shareholders of record on July $5$

$1.$ Prepare journal entries for the above transactions.

$2.$ Prepared the stockholders$$ equity section of Kelly Corporation$$s balance sheet as of June $30,20$x$3.$ Net income for the period April $1$ through June $30$ was $$150,000.$

$3.$ What effect, if any, will the cash dividend declaration on June $30$ have on Kelly Corporation$$s net income, retained earnings, and cash flows?

SHOW YOUR WORK FOR ALL PARTS.