Shaw Corporation Reported Stockholders' Equity on December 31 of the Prior

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

Prepare a statement of retained earnings as of December 31 of the current year.

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