Question
Comparative statements of retained earnings for Renn-Dever Corporation were reported in its 2016 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 2016 annual report as follows.
RENN-DEVER CORPORATION Statements of Retained Earnings | |||||||||
For the Years Ended December 31, | 2016 | 2015 | 2014 | ||||||
Balance at beginning of year | $ | 7,158,452 | $ | 5,807,552 | $ | 5,984,552 | |||
Net income (loss) | 3,568,700 | 2,460,900 | (177,000 | ) | |||||
Deductions: | |||||||||
Stock dividend (38,500 shares) | 269,500 | ||||||||
Common shares retired (136,000 shares) | 272,000 | ||||||||
Common stock cash dividends | 979,950 | 838,000 | 0 | ||||||
Balance at end of year | $ | 9,477,702 | $ | 7,158,452 | $ | 5,807,552 | |||
At December 31, 2013, common shares consisted of the following: |
Common stock, 1,955,000 shares at $1 par | $ | 1,955,000 | |
Paid-in capitalexcess of par | 9,775,000 | ||
Required: |
Infer from the reports the events and transactions that affected Renn-Dever Corporations retained earnings during 2014, 2015, and 2016. Prepare the journal entries that reflect those events and transactions. (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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