Comparative statements of retained earnings for Renn-Dever Corporation were repo
ID: 2444893 • Letter: C
Question
Comparative statements of retained earnings for Renn-Dever Corporation were reported in its 2013 annual report as follows.
RENN-DEVER CORPORATIONS
Statement of Retained Earnings
For the Years Ended Dec 31
2013
2012
2011
Balance at beginning of year
$ 6,794,292
5,464,052
$5,624,552
Net Income (Loss)
3,308,700
2,240,900
(160,500)
Deductions:
Stock dividend ( 34,900 shares)
242,000
Common shares retired
(110,000 share)
212,660
Common stock cash dividends
889,950
698,000
0
Balance at end of year
$ 8,971,042
$6,794,292
$5,464,052
At December 31, 2010 common shares consisted of the following.
Common stock, 1855,000 shares at $1 par $ 1,855,000
Paid-in capital – excess of par 7,420,00
Required:
Infer from the reports the events and transactions that affected Renn-Dever Corporation’s retained earning during 2011, 2012 and 2013. Prepare the journal entries that reflect those events and transactions.
For the Years Ended Dec 31
2013
2012
2011
Balance at beginning of year
$ 6,794,292
5,464,052
$5,624,552
Net Income (Loss)
3,308,700
2,240,900
(160,500)
Deductions:
Stock dividend ( 34,900 shares)
242,000
Common shares retired
(110,000 share)
212,660
Common stock cash dividends
889,950
698,000
0
Balance at end of year
$ 8,971,042
$6,794,292
$5,464,052
Explanation / Answer
Date Particluars Debit Credit 2011 Retained Earnings 160500 P&L 160500 2012 P&L 2240900 Retained Earnings 2240900 Common Stock 110000 Paid in Capital excess of par 102660 Cash 212660 Retained Earnings 698000 Dividend Payable 698000 2013 P&L 3308700 Retained Earnings 3308700 Retained Earnings 242000 Common Stock Dividend payable 34900 Paid in Capital excess of par 207100 Retained Earnings 889950 Dividend Payable 889950
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