Journal Entries

1. Record transfer of net loss to retained earnings

2. Record transfer of net income to retained earnings

3. Record purchase of shares of retirement

4. Record declaration of cash dividend

5. Record payment of cash dividend

6. Record transfer of net income to retained earnings

7. Record issue of stock dividend

8. Record declaration of cash dividend

9. Record payment of cash dividend

Problem 18-4 (Algo) Statement of retained earnings (LO18-5, 18-7] Comparative statements of retained earnings for Renn-Dever Corporation were reported in its 2021 annual report as follows. 2019 $5,844,552 (166,500) RENN-DEVER CORPORATION Statements of Retained Earnings For the Years Ended December 31 2021 2020 Balance at beginning of year $6,986,952 $5,678,052 Net income (Loss) 3,428,700 2,320,900 Deductions: Stock dividend (35,000 shares) 245,000 Common shares retired (122,000 shares) 244,000 Common stock cash dividends 909,950 768,000 Balance at end of year $9, 260, 702 $6,986,952 0 $5,678,052 At December 31, 2018, common shares consisted of the following: Common stock, 1,850,000 shares at $1 par Paid-in capital-excess of par $1,850,000 9,250,000 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.)