Using the information below, put the transactions in pro forma and complete the required journal entries.

July $1$ The owner is concerned about unlimited liability being a sole proprietorship. Therefore, the company is converting to a corporation. The owner will receive $2,500$ shares of $$100$ par common stock for the original investment. The balance in owner$$s capital is $$175,000.$

July $3$ Issued $30,000$ shares of common stock, $$10$ par value.

July $14$ Declared a cash dividend of $$1\mathrm{.}50$ per share for the outstanding shares of common stock. $($Remember to utilize the correct payable account.$)$

July $31$ Paid out the dividend in cash.

Prepare a statement of Retained Earnings. Current year net income is $$175,000.$ There is no prior year retained earnings since the company just became a corporation.$$