Comparative statements of retained earnings for Renn-Dever Corporation were reported in its 2016 annual report as follows.
RENN-DEVER CORPORATION
Statements of Retained Earnings
For the Years Ended December 31, 2016 2015 2014
Balance at beginning of year $ 7,158,452 $ 5,807,552 $ 5,984,552
Net income (loss) 3,568,700 2,460,900 (177,000 )
Deductions:
Stock dividend (38,500 shares) 269,500
Common shares retired (136,000 shares) 272,000
Common stock cash dividends 979,950 838,000 0
Balance at end of year $ 9,477,702 $ 7,158,452 $ 5,807,552
At December 31, 2013, common shares consisted of the following:
Common stock, 1,955,000 shares at $1 par $ 1,955,000
Paid-in capital—excess of par 9,775,000
Required:
Infer from the reports the events and transactions that affected Renn-Dever Corporation’s retained earnings during 2014, 2015, and 2016. Prepare the journal entries that reflect those events and transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Referencese Book and Resources