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In: Accounting
Comparative statements of retained earnings for Renn-Dever Corporation were reported in its 2018 annual report as...
Comparative statements of retained earnings for Renn-Dever Corporation were reported in its 2018 annual report as follows. RENN-DEVER CORPORATION Statements of Retained Earnings For the Years Ended December 31, 2018 2017 2016 Balance at beginning of year $ 6,962,452 $ 5,659,552 $ 5,824,552 Net income (loss) 3,408,700 2,300,900 (165,000 ) Deductions: Stock dividend (34,500 shares) 241,500 Common shares retired (120,000 shares) 240,000 Common stock cash dividends 899,950 758,000 0 Balance at end of year $ 9,229,702 $ 6,962,452 $ 5,659,552 At December 31, 2015, common shares consisted of the following: Common stock, 1,835,000 shares at $1 par $ 1,835,000 Paid-in capital—excess of par 11,010,000 Required: Infer from the reports the events and transactions that affected Renn-Dever Corporation’s retained earnings during 2016, 2017, and 2018. 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.)
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ekkarill92 answered 1 year agoRelated Solutions
Comparative statements of retained earnings for Renn-Dever Corporation were reported in its 2018 annual report as...
Comparative statements of retained earnings for Renn-Dever
Corporation were reported in its 2018 annual report as
follows.
RENN-DEVER CORPORATION
Statements of Retained Earnings
For the Years Ended December 31,
2018
2017
2016
Balance at beginning of year
$
7,011,452
$
5,696,552
$
5,864,552
Net income (loss)
3,448,700
2,340,900
(168,000
)
Deductions:
Stock dividend (35,500 shares)
248,500
Common shares retired (124,000 shares)
248,000
Common stock cash dividends
919,950
778,000
0
Balance at end of year
$
9,291,702
$
7,011,452
$
5,696,552...
Sheridan Corporation is preparing the comparative financial statements for the annual report to its shareholders for...
Sheridan Corporation is preparing the comparative financial
statements for the annual report to its shareholders for fiscal
years ended May 31, 2020, and May 31, 2021. The income from
operations for the fiscal year ended May 31, 2020, was $1,889,000
and income from continuing operations for the fiscal year ended May
31, 2021, was $2,530,000. In both years, the company incurred a 9%
interest expense on $2,449,000 of debt, an obligation that requires
interest-only payments for 5 years. The company...
Pina Corporation is preparing the comparative financial statements for the annual report to its shareholders for...
Pina Corporation is preparing the comparative financial
statements for the annual report to its shareholders for fiscal
years ended May 31, 2020, and May 31, 2021. The income from
operations for the fiscal year ended May 31, 2020, was $1,818,000
and income from continuing operations for the fiscal year ended May
31, 2021, was $2,424,000. In both years, the company incurred a 10%
interest expense on $2,424,000 of debt, an obligation that requires
interest-only payments for 5 years. The company...
Shamrock Corporation is preparing the comparative financial statements for the annual report to its shareholders for...
Shamrock Corporation is preparing the comparative financial
statements for the annual report to its shareholders for fiscal
years ended May 31, 2020, and May 31, 2021. The income from
operations for the fiscal year ended May 31, 2020, was $1,818,000
and income from continuing operations for the fiscal year ended May
31, 2021, was $2,424,000. In both years, the company incurred a 10%
interest expense on $2,424,000 of debt, an obligation that requires
interest-only payments for 5 years. The company...
Teal Corporation is preparing the comparative financial statements for the annual report to its shareholders for...
Teal Corporation is preparing the comparative financial
statements for the annual report to its shareholders for fiscal
years ended May 31, 2020, and May 31, 2021. The income from
operations for the fiscal year ended May 31, 2020, was $1,746,000
and income from continuing operations for the fiscal year ended May
31, 2021, was $2,459,000. In both years, the company incurred a 10%
interest expense on $2,370,000 of debt, an obligation that requires
interest-only payments for 5 years. The company...
Blue Corporation is preparing the comparative financial statements for the annual report to its shareholders for...
Blue Corporation is preparing the comparative financial
statements for the annual report to its shareholders for fiscal
years ended May 31, 2017, and May 31, 2018. The income from
operations for the fiscal year ended May 31, 2017, was $1,791,000
and income from continuing operations for the fiscal year ended May
31, 2018, was $2,378,000. In both years, the company incurred a 10%
interest expense on $2,345,000 of debt, an obligation that requires
interest-only payments for 5 years. The company...
Grouper Corporation is preparing the comparative financial statements for the annual report to its shareholders for...
Grouper Corporation is preparing the comparative financial
statements for the annual report to its shareholders for fiscal
years ended May 31, 2017, and May 31, 2018. The income from
operations for the fiscal year ended May 31, 2017, was $1,772,000
and income from continuing operations for the fiscal year ended May
31, 2018, was $2,440,000. In both years, the company incurred a 9%
interest expense on $2,385,000 of debt, an obligation that requires
interest-only payments for 5 years. The company...
XYZ Corporation published the following information in its financial statements for its 2018 annual report: ...
XYZ Corporation published the following information in
its financial statements for its 2018 annual report:
Income Statement
Items:
Sales
$76,000
- Cost of goods sold
49,000
Gross profit
27,000
- Cash Operating expenses
$9,000
- Depreciation
2,000
Total Operating Expenses
11,000
EBIT
16,000...
Problem 16-6 Skysong Corporation is preparing the comparative financial statements for the annual report to its...
Problem 16-6 Skysong Corporation is preparing the comparative
financial statements for the annual report to its shareholders for
fiscal years ended May 31, 2017, and May 31, 2018. The income from
operations for the fiscal year ended May 31, 2017, was $1,775,000
and income from continuing operations for the fiscal year ended May
31, 2018, was $2,566,000. In both years, the company incurred a 10%
interest expense on $2,446,000 of debt, an obligation that requires
interest-only payments for 5 years....
Presented below are the comparative income and retained earnings statements for Martinez Inc. for the years...
Presented below are the comparative income and retained earnings
statements for Martinez Inc. for the years 2017 and 2018.
2018
2017
Sales
$334,000
$264,000
Cost of sales
217,000
144,000
Gross profit
117,000
120,000
Expenses
95,200
50,700
Net income
$21,800
$69,300
Retained earnings (Jan. 1)
$121,700
$76,300
Net income
21,800
69,300
Dividends
(31,400
)
(23,900
)
Retained earnings (Dec. 31)
$112,100
$121,700
The following additional information is provided:
1.
In 2018, Martinez Inc. decided to switch its depreciation
method from sum-of-the-years’...
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