National Supplys shareholders equity included the following accounts at December 31, 2020:

Shareholders' Equity
Common stock, 9 million shares at $1 par	$	9,000,000
Paid-in capitalexcess of par		63,000,000
Retained earnings		92,500,000

Required: 1. National Supply reacquired shares of its common stock in two separate transactions and later sold shares. Prepare the entries for each of the transactions under each of two separate assumptions: the shares are (a) retired and (b) accounted for as treasury stock.

February 15, 2021	Reacquired 400,000 shares at $10 per share.
February 17, 2022	Reacquired 400,000 shares at $7.50 per share.
November 9, 2023	Sold 275,000 shares at $9 per share (assume FIFO cost).

2. Prepare the shareholders equity section of National Supplys balance sheet at December 31, 2023, assuming the shares are (a) retired and (b) accounted for as treasury stock. Net income was $16 million in 2021, $18 million in 2022, and $20 million in 2023. No dividends were paid during the three-year period.

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 31
	2021			2020			2019
Balance at beginning of year	$	6,786,452		$	5,531,552		$	5,684,552
Net income (loss)		3,248,700			2,140,900			(153,000	)
Deductions:
Stock dividend (31,000 shares)		217,000
Common shares retired (104,000 shares)					208,000
Common stock cash dividends		829,950			678,000			0
Balance at end of year	$	8,988,202		$	6,786,452		$	5,531,552

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

Common stock, 1,730,000 shares at $1 par	$	1,730,000
Paid-in capitalexcess of par		8,650,000

Required: Infer from the reports the events and transactions that affected Renn-Dever Corporations 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.)

3.The shareholders equity of Kramer Industries includes the data shown below. During 2022, cash dividends of $190 million were declared. Dividends were not declared in 2020 or 2021.

	($ in millions)
Common stock	$	400
Paid-in capitalexcess of par, common		1,600
Preferred stock, 11%, nonparticipating		100
Paid-in capitalexcess of par, preferred		260

Required: Determine the amount of dividends payable to preferred shareholders and to common shareholders under each of the following two assumptions regarding the characteristics of the preferred stock. (Enter your answers in millions (i.e., 10,000,000 should be entered as 10).) Assumption A The preferred stock is noncumulative. Assumption B The preferred stock is cumulative.