Comparative statements of retained earnings for Renn-Dever Corporation were as follows:RENN-DEVER CORPORATIONStatements of Retained EarningsFor the Years Ended December 312026$7,182,9523,588,700Balance at beginning of yearNet income (loss)Deductions:Stock dividend (39,000 shares)Common shares retired (138,000 shares)Common stock cash dividendsBalance at end of yearAt December 31, 2023, common shares consisted of the following:Common stock, 1,970,000 shares at $1 parPaid-in capital-excess of parView transaction listJournal entry worksheet<2 3 415273,000989,950$9,508,7026Required:Infer from the reports the events and transactions that affected Renn-Dever Corporation's retained earnings during 2024, 2025, and2026. Prepare the journal entries that reflect those events and transactions. (Hint: In lieu of revenues and expenses, use an accounttitled "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.782025$5,826,0522,480,900276,000848,000$7,182,952$ 1,970,00011,820,00092024$6,004,552(178,500)$5,826,052

Retained earnings include accumulated profit earned by the organization. Retained earnings are used to declare common stock dividends and cash Dividends, If the retirement of shares is made at a higher value then the value of its paid-in capital will be recorded as retained earnings.1a. Paid in Capital-Excess of Par for the retirement of common stock -= Paid in Capital in Excess of Par / Common Stock Number X Common Stock Retired= ($11,820,000/1,970,000 Shares) X 138,000 shares = $828,0001a. Journal Entries -Renn-Dever CorporationJournal EntriesDateAccounts Title Debit Credit 2024 Dec 31Retained Earnings $ 178,500 Income Summary $ 178,500(To record loss transferred to retained earnings)2025 Dec 31Common Shares $ 138,000 Paid in Capital-Excess of Par $ 828,000 Retained Earnings $ 276,000 Cash $ 1,242,000(To record retirement of common stock) Dec 31Retained Earnings $ 848,000 Cash $ 848,000(To record Cash Dividend Paid) Dec 31Income Summary $ 2,480,900 Retained Earnings $ 2,480,900(To record profit transferred to retained earnings)2026 Dec 31Retained Earnings $ 273,000 Common Stock Distributable $ 273,000(To record Stock Dividend Declared) Dec 31Retained Earnings $ 989,950 Cash $ 989,950(To record Cash Dividend Paid) Dec 31Income Summary $ 3,588,700 Retained Earnings $ 3,588,700(To record Profit transferred to retained earnings)