question archive Comparative statements of retained earnings for Renn-Dever Corporation were reported in its 2021 annual report as follows
Comparative statements of retained earnings for Renn-Dever Corporation were reported in its 2021 annual report as follows
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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
2021 2020 2019
Balance at beginning of year$6,845,952 $5,587,052 $5,744,552
Net income (loss) 3,328,700 2,200,900 (157,500)
Deductions:
Stock dividend (32,500 shares) 227,500
Common shares retired (112,000 shares) 224,000
Common stock cash dividends 859,950 718,000 0
Balance at end of year $9,087,202 $6,845,952 $5,587,052
At December 31, 2018, common shares consisted of the following:
Common stock, 1,775,000 shares at $1 par$1,775,000
Paid-in capital—excess of par 14,200,000
Infer from the reports the events and transactions that affected Renn-Dever Corporation's retained earnings during 2019, 2020, and 2021. 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.)
Journal Entry Worksheet
-(2019) Record transfer of net loss to retained earnings
-(2020) Record transfer of net income to retained earnings
-(2020) Record repurchase of shares for retirement
-(2020) Record declaration of cash dividend
-(2020) Record payment of cash dividend
-(2021) Record transfer of net income to retained earnings
-(2021) Record issue of stock dividend
-(2021) Record declaration of cash dividend
-(2021) Record payment of cash dividend
