Comparative statements of retained earnings for Renn-Dever Corporation were reported in its 2021 annual report as follows.

At December 31, 2018, common shares consisted of the following:

Common stock, 1,855,000 shares at $1 par ......$ 1,855,000Paid-in capital?excess of par ................................7,420,000

Required:Infer from the reports the events and transactions that affected Renn-Dever Corporation?s retained earnings during 2019, 2020, and 2021. Prepare the journal entries that reflect those events and transactions.

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RENN-DEVER CORPORATION Statements of Retained Earnings For the Years Ended December 31 2021 2020 2019 Balance at beginning of year Net income (loss) Deductions: $6,794,292 $5,464,052 $5,624,552 (160,500) 3,308,700 2,240,900 Stock dividend (34,900 shares) Common shares retired (110,000 shares) 242,000 212,660 Common stock cash dividends 889,950 698,000 $8,971,042 Balance at end of year $6,794,292 $5,464,052