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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 $7,207,452 3,608,700 276,500 999,950 $9,539,702 Balance at beginning of year Net income (loss) Deductions: Stock dividend (39,500 shares) Common shares retired (140,000 shares) Common stock cash dividends Balance at end of year At December 31, 2023, common shares consisted of the following: Common stock, 1,985,000 shares at $1 par Paid-in capital-excess of par 2025 $5,844,552 2,500,900 280,000 858,000 $7,207,452 $ 1,985,000 9,925,000 2024 $6,024,552 (180,000) $5,844,552 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.

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 $7,207,452 3,608,700 276,500 999,950 $9,539,702 Balance at beginning of year Net income (loss) Deductions: Stock dividend (39,500 shares) Common shares retired (140,000 shares) Common stock cash dividends Balance at end of year At December 31, 2023, common shares consisted of the following: Common stock, 1,985,000 shares at $1 par Paid-in capital-excess of par 2025 $5,844,552 2,500,900 280,000 858,000 $7,207,452 $ 1,985,000 9,925,000 2024 $6,024,552 (180,000) $5,844,552 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.

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 $7,207,452 3,608,700 276,500 Balance at beginning of year Net income (loss) Deductions: Stock dividend (39,500 shares) Common shares retired (140,000 shares) Common stock cash dividends Balance at end of year 999,950 $9,539,702 At December 31, 2023, common shares consisted of the following: Common stock, 1,985,000 shares at $1 par Paid-in capital-excess of par 2025 $5,844,552 2,500,900 280,000 858,000 $7,207,452 $ 1,985,000 9,925,000 2024 $6,024,552 (180,000) 0 $5,844,552 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.
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 $7,207,452 3,608,700 276,500 Balance at beginning of year Net income (loss) Deductions: Stock dividend (39,500 shares) Common shares retired (140,000 shares) Common stock cash dividends Balance at end of year 999,950 $9,539,702 At December 31, 2023, common shares consisted of the following: Common stock, 1,985,000 shares at $1 par Paid-in capital-excess of par 2025 $5,844,552 2,500,900 280,000 858,000 $7,207,452 $ 1,985,000 9,925,000 2024 $6,024,552 (180,000) 0 $5,844,552 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.
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