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:
$$\begin{array} { l | l } \text { Common stock, \$5 par value, } 1,000,000 \text { shares } & \$ 2,500,000 \\\text { authorzed, 500,000 shares istued ...... } & \\\hline \text { Paid-in capital in excess of par, common stock } \ldots & 1,000,000 \\\hline \text { Retained earnings } \ldots \ldots \ldots \ldots \ldots \ldots \ldots \ldots \ldots \ldots \ldots \ldots & 3,000,000\end{array}$$ The following selected transactions occurred during the current year:
Feb. 15 The board of directors declared a 5% stock dividend to stockholders of record on March 1, payable March 20. The stock was selling for $8 per share.
Mar. 9 Distributed the stock dividend.
May 1 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.
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.
Prepare a statement of retained earnings as of December 31 of the current year.