The shareholders equity section of the Balance sheet of Sun Corp. showed the following as of January 1, 200C. Share Capital, 100 par value, 100,000 shares authorized 50,000 shares issued P5,000,000 Share Premium 400,000 Retained Earnings 2,500,000

During 200C, Sun Corp completed the following: a. Retained Earnings were appropriated for the acquisition of 6,000 treasury shares at 90 per share. b. In March, the corporation acquired the treasury shares above. c. In July, the corporation sold 3,000 of the treasury shares at 105 per share. d. In December, the corporation declared cash dividends of 20 per share payable on January 21, 200D to all shareholders of record as of January 15, 200D. e. In December, the corporation formally retired 2,000 of the treasury shares originally issued at 102 per share. Required: 1. Journal the foregoing transaction 2. What is the retained earnings balance on December 31. 200C?