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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 $7,182,952 3,588,700 273,000 989,950 $9,508,702 Balance at beginning of year Net income (loss) Deductions: Stock dividend (39,000 shares) Common shares retired (138,000 shares) Common stock cash dividends Balance at end of year At December 31, 2023, common shares consisted of the following: Common stock, 1,970,000 shares at $1 par Paid-in capital-excess of par 2025 $5,826,052 2,480,900 276,000 848,000 $7,182,952 $ 1,970,000 11,820,000 2024 $6,004,552 (178,500) $5,826,052 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.)

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 $7,182,952 3,588,700 273,000 989,950 $9,508,702 Balance at beginning of year Net income (loss) Deductions: Stock dividend (39,000 shares) Common shares retired (138,000 shares) Common stock cash dividends Balance at end of year At December 31, 2023, common shares consisted of the following: Common stock, 1,970,000 shares at $1 par Paid-in capital-excess of par 2025 $5,826,052 2,480,900 276,000 848,000 $7,182,952 $ 1,970,000 11,820,000 2024 $6,004,552 (178,500) $5,826,052 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.)

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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 $7,182,952 3,588,700 Balance at beginning of year Net income (loss) Deductions: Stock dividend (39,000 shares) Common shares retired (138,000 shares) Common stock cash dividends Balance at end of year 273,000 989,950 $9,508,702 At December 31, 2023, common shares consisted of the following: Common stock, 1,970,000 shares at $1 par Paid-in capital-excess of par 2025 $5,826,052 2,480,900 276,000 848,000 $7,182,952 $ 1,970,000 11,820,000 2024 $6,004,552 (178,500) 0 $5,826,052 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.)
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 $7,182,952 3,588,700 Balance at beginning of year Net income (loss) Deductions: Stock dividend (39,000 shares) Common shares retired (138,000 shares) Common stock cash dividends Balance at end of year 273,000 989,950 $9,508,702 At December 31, 2023, common shares consisted of the following: Common stock, 1,970,000 shares at $1 par Paid-in capital-excess of par 2025 $5,826,052 2,480,900 276,000 848,000 $7,182,952 $ 1,970,000 11,820,000 2024 $6,004,552 (178,500) 0 $5,826,052 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.)
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