Question
Comparative statements of retained earnings for Renn-Dever Corporation were reported in its 2021 annual report as follows. RENN-DEVER CORPORATION Statements of Retained Earnings For the
Comparative statements of retained earnings for Renn-Dever Corporation were reported in its 2021 annual report as follows.
RENN-DEVER CORPORATION
Statements of Retained Earnings
For the Years Ended December 31202120202019Balance at beginning of year$6,794,292$5,464,052$5,624,552Net income (loss)3,308,7002,240,900(160,500)Deductions:Stock dividend (34,900 shares)242,000Common shares retired (110,000 shares)212,660Common stock cash dividends889,950698,0000Balance at end of year$8,971,042$6,794,292$5,464,052
At December 31, 2018, common shares consisted of the following:
Common stock, 1,855,000 shares at $1 par$1,855,000Paid-in capitalexcess of par7,420,000
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. (Hint: In lieu of revenues and expenses, use an account titled "Income summary" to close net income or net loss.)(If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Record transfer of net loss to retained earnings
Record transfer of net income to retained earnings
Record repurchase of shares for retirement.
Record declaration of cash dividend.
Record payment of cash dividend.
Record transfer of net income to retained earnings
Record issue of stock dividend.
Record declaration of cash dividend.
Record payment of cash dividend.
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