Comparative statements of retained earnings for Renn-Dever Corporation were as follows: RENN-DEVER CORPORATION Statements of Retained Earnings For the Years Ended December 31 2026 $7,035,952 3,468,700 252,000 929,950 $9,322,702 Balance at beginning of year Net income (loss) Deductions: Stock dividend (36,000 shares) Common shares retired (126,000 shares) Common stock cash dividends Balance at end of year At December 31, 2023, common shares consisted of the following: Common stock, 1,880,000 shares at $1 par Paid-in capital-excess of par View transaction list Journal entry worksheet 1 2 Date 2024 Required: Infer from the reports the events and transactions that affected Renn-Dever Corporation's retained earnings during 2024, 2025, and 2026. 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.) Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. 3 Note: Enter debits before credits. Record entry 4 Record transfer of net loss to retained earnings. 5 General Journal 6 Clear entry 7 8 Debit 2025 $5,715,052 2,360,900 $ 1,880,000 5,640,000 9 252,000 788,000 $7,035,952 Credit View general journal 2024 $5,884,552 (169,500) > 0 $5,715,052
Comparative statements of retained earnings for Renn-Dever Corporation were as follows: RENN-DEVER CORPORATION Statements of Retained Earnings For the Years Ended December 31 2026 $7,035,952 3,468,700 252,000 929,950 $9,322,702 Balance at beginning of year Net income (loss) Deductions: Stock dividend (36,000 shares) Common shares retired (126,000 shares) Common stock cash dividends Balance at end of year At December 31, 2023, common shares consisted of the following: Common stock, 1,880,000 shares at $1 par Paid-in capital-excess of par View transaction list Journal entry worksheet 1 2 Date 2024 Required: Infer from the reports the events and transactions that affected Renn-Dever Corporation's retained earnings during 2024, 2025, and 2026. 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.) Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. 3 Note: Enter debits before credits. Record entry 4 Record transfer of net loss to retained earnings. 5 General Journal 6 Clear entry 7 8 Debit 2025 $5,715,052 2,360,900 $ 1,880,000 5,640,000 9 252,000 788,000 $7,035,952 Credit View general journal 2024 $5,884,552 (169,500) > 0 $5,715,052
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Comparative statements of retained earnings for Renn-Dever Corporation were as follows:
RENN-DEVER CORPORATION
Statements of Retained Earnings
For the Years Ended December 31
2026
$7,035,952
3,468,700
Balance at beginning of year
Net income (loss)
Deductions:
Stock dividend (36,000 shares)
Common shares retired (126,000 shares)
Common stock cash dividends
Balance at end of year
Common stock, 1,880,000 shares at $1 par
Paid-in capital-excess of par
At December 31, 2023, common shares consisted of the following:
View transaction list
Journal entry worksheet
1
2
Date
2024
3
Note: Enter debits before credits.
Required:
Infer from the reports the events and transactions that affected Renn-Dever Corporation's retained earnings during 2024, 2025, and
2026. 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.)
Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.
Record entry
4
Record transfer of net loss to retained earnings.
5
General Journal
6
Clear entry
929,950
$9,322,702
7
252,000
8
Debit
2025
$5,715,052
2,360,900
$ 1,880,000
5,640,000
9
252,000
788,000
$7,035,952
Credit
2024
$5,884,552
(169,500)
View general journal
0
$5,715,052
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