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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 Balance at beginning of year Net income (loss) Deductions: Stock dividend (31,000 shares) Common shares retired (104,000 shares) Common stock cash dividends Balance at end of year 2021 $6,786,452 3,248,700 2020 2019 $5,531,552 2,140,900 $5,684,552 (153,000) 217,000 208,000 829,950 $8,988,202 678,000 $6,786,452 0 $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 capital-excess of par 8,650,000 Required: Infer from the reports the events and transactions that affected Renn-Dever Corporation's 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.)

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 Balance at beginning of year Net income (loss) Deductions: Stock dividend (31,000 shares) Common shares retired (104,000 shares) Common stock cash dividends Balance at end of year 2021 $6,786,452 3,248,700 2020 2019 $5,531,552 2,140,900 $5,684,552 (153,000) 217,000 208,000 829,950 $8,988,202 678,000 $6,786,452 0 $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 capital-excess of par 8,650,000 Required: Infer from the reports the events and transactions that affected Renn-Dever Corporation's 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.)

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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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 Balance at beginning of year Net income (loss) Deductions: Stock dividend (31,000 shares) Common shares retired (104,000 shares) Common stock cash dividends Balance at end of year 2021 $6,786,452 3,248,700 2020 $5,531,552 2,140,900 2019 $5,684,552 (153,000) 217,000 208,000 829,950 $8,988,202 678,000 $6,786,452 0 $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 capital-excess of par 8,650,000 Required: Infer from the reports the events and transactions that affected Renn-Dever Corporation's 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.)
Transcribed Image Text: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 Balance at beginning of year Net income (loss) Deductions: Stock dividend (31,000 shares) Common shares retired (104,000 shares) Common stock cash dividends Balance at end of year 2021 $6,786,452 3,248,700 2020 $5,531,552 2,140,900 2019 $5,684,552 (153,000) 217,000 208,000 829,950 $8,988,202 678,000 $6,786,452 0 $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 capital-excess of par 8,650,000 Required: Infer from the reports the events and transactions that affected Renn-Dever Corporation's 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.)
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