Q$2$: The top Hat lnc$,$ is a chain of magic shops that is organized as a corporation. During the month ofJune, the stock holder's equity accounts of the Top hat were affected by the following events:

June $3$ The corporations sold $1000$ shares of capital stock at $$20$ per share.

June $10$ The corporation declared a $255$ cents per share dividend on its $20000$ shares of outstandingcapital stock, payable on June $23.$

June $23$ The corporation paid the dividend declared on June $10.$

June $30$ The income summary account showed a credit balance of $60,000,$ the corporation accounts areclosed monthly.

Instructions:

a$.$ Prepare journal entries for each of the above events in the accounts of Top Hat.

Include theentries necessary to close the income summary dividends accounts.

b$.$ Prepare a statement of retained earnings for June. Assume that the balance of retained earningson May $31$ was $520,000.$