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The stockholders' equity section of Beta Corporation's balance sheet as of December $31,2025$ is as follows:

Stockholders' Equity

Common stock, $$5$ par value; authorized, $2,000,000$ shares;

issued, $600,000$ shares $$3,000,000$

Paid$-$in capital in excess of par $850,000$

Retained earnings $4,500,000$

$$8,350,000$

The following events occurred during $2026$:

$1.$ Jan. $545,000$ shares of common stock were sold for $$8$ per share.

$2.$ Jan. $16$ Declared a cash dividend of $20$ cents per share, payable February $15$ to stockholders of record

on February $5.$

$3.$ Feb. $2060,000$ shares of authorized and unissued common stock were sold for $$12$ per share.

$4.$ March $1$ A $30\%$ stock dividend was declared and issued. Fair value per share is currently $$15.$

$5.$ April $1$ A two$-$for$-$one split was carried out. The par value of the stock was to be reduced to $$2\mathrm{.}50$ per

share. Fair value on March $31$ was $$18$ per share.

$6.$ July $1$ A $15\%$ stock dividend was declared and issued. Fair value is currently $$10$ per share.

$7.$ Aug. $1$ A cash dividend of $20$ cents per share was declared, payable September $1$ to stockholders of

record on August $21.$

REQUIRED:

$1.$ Record the journal entries on the following page.

$2.$ Answer the following questions:

a$.$ What is the number of common shares outstanding on December $31,2026?\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_$

b$.$ What is the balance in Retained Earnings on December $31,2026?\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_$

$\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_$

Calculations:

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