Comparative statements of retained earnings for Renn-Dever Corporation were reported in its 2018 annual report as follows. RENN-DEVER CORPORATION Statements of Retained Earnings For the Years Ended December 31, 2018 2017 2016 Balance at beginning of year $ 7,207,452 $ 5,844,552 $ 6,024,552 Net income (loss) 3,608,700 2,500,900 (180,000 ) Deductions: Stock dividend (39,500 shares) 276,500 Common shares retired (140,000 shares) 280,000 Common stock cash dividends 999,950 858,000 0 Balance at end of year $ 9,539,702 $ 7,207,452 $ 5,844,552 At December 31, 2015, common shares consisted of the following: Common stock, 1,985,000 shares at $1 par $ 1,985,000 Paid-in capitalexcess of par 9,925,000 Required: Infer from the reports the events and transactions that affected Renn-Dever Corporations retained earnings during 2016, 2017, and 2018. Prepare the journal entries that reflect those events and transactions.