Comparative statements of retained earnings for Renn-Dever Corporation were as follows:RENN-DEVER CORPORATIONStatements of Retained EarningsFor the Years Ended December 312026$7,182,9523,588,700Balance at beginning of yearNet income (loss)Deductions:Stock dividend (39,000 shares)Common shares retired (138,000 shares)Common stock cash dividendsBalance at end of yearAt December 31, 2023, common shares consisted of the following:Common stock, 1,970,000 shares at $1 parPaid-in capital-excess of parView transaction listJournal entry worksheet<2 3 415273,000989,950$9,508,7026Required:Infer from the reports the events and transactions that affected Renn-Dever Corporation's retained earnings during 2024, 2025, and2026. Prepare the journal entries that reflect those events and transactions. (Hint: In lieu of revenues and expenses, use an accounttitled "Income summary" to close net income or net loss.)Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.782025$5,826,0522,480,900276,000848,000$7,182,952$ 1,970,00011,820,00092024$6,004,552(178,500)$5,826,052

Retained earnings include accumulated profit earned by the organization. Retained earnings are used…

Comparative statements of retained earnings for Renn-Dever Corporation were as follows: RENN-DEVER CORPORATION Statements of Retained Earnings For the Years Ended December 31 2026 $7,182,952 3,588,700 Balance at beginning of year Net income (loss) Deductions: Stock dividend (39,000 shares) Common shares retired (138,000 shares) Common stock cash dividends Balance at end of year At December 31, 2023, common shares consisted of the following: Common stock, 1,970,000 shares at $1 par Paid-in capital-excess of par 273,000 989,950 $9,508,702 2025 $5,826,052 2,480,900 276,000 848,000 $7,182,952 $ 1,970,000 11,820,000 2024 $6,004,552 (178,500) $5,826,052 Required: Infer from the reports the events and transactions that affected Renn-Dever Corporation's retained earnings during 2024, 2025, and 2026. 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.) Note: 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 as follows: RENN-DEVER CORPORATION Statements of Retained Earnings For the Years Ended December 31 2026 $7,182,952 3,588,700 Balance at beginning of year Net income (loss) Deductions: Stock dividend (39,000 shares) Common shares retired (138,000 shares) Common stock cash dividends Balance at end of year At December 31, 2023, common shares consisted of the following: Common stock, 1,970,000 shares at $1 par Paid-in capital-excess of par 273,000 989,950 $9,508,702 2025 $5,826,052 2,480,900 276,000 848,000 $7,182,952 $ 1,970,000 11,820,000 2024 $6,004,552 (178,500) $5,826,052 Required: Infer from the reports the events and transactions that affected Renn-Dever Corporation's retained earnings during 2024, 2025, and 2026. 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.) Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter16: Retained Earnings And Earnings Per Share

Section: Chapter Questions

Problem 19E: Lyon Company shows the following condensed income statement information for the year ended December...

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Given the following year-end information for Somerset Corporation, compute its basic earnings per share. Net income, 13,000 Preferred dividends declared, 4,000 Weighted average common shares for the year, 4,500
On January 1, 2019, Kittson Company had a retained earnings balance of 218,600. It is subject to a 30% corporate income tax rate. During 2019, Kittson earned net income of 67,000, and the following events occurred: 1. Cash dividends of 3 per share on 4,000 shares of common stock were declared and paid. 2. A small stock dividend was declared and issued. The dividend consisted of 600 shares of 10 par common stock. On the date of declaration, the market price of the companys common stock was 36 per share. 3. The company recalled and retired 500 shares of 100 par preferred stock. The call price was 125 per share; the stock had originally been issued for 110 per share. 4. The company discovered that it had erroneously recorded depreciation expense of 45,000 in 2018 for both financial reporting and income tax reporting. The correct depreciation for 2018 should have been 20,000. This is considered a material error. Required: 1. Prepare journal entries to record Items 1 through 4. 2. Prepare Kittsons statement of retained earnings for the year ended December 31, 2019.
Income Statement, Lower Portion Cunningham Company reports a retained earnings balance of 365,200 at the beginning of 2019. For the year ended December 31, 2019, the company reports pretax income from continuing operations of 150,500. The following information is also available pertaining to 2019: 1. The company declared and paid a 0.72 cash dividend per share on the 30,000 shares of common stock that were outstanding the entire year. 2. The company incurred a pretax 21,000 loss as a result of an earthquake, which is not unusual for the area. This is included in the 150,500 income from continuing operations. 3. The company sold Division P (a component of the company) in May. From January through May, Division P had incurred a pretax loss from operations of 33,000. A pretax gain of 15,000 was recognized on the sale of Division P. Required: Assuming that all the pretax items are subject to a 30% income tax rate: 1. Complete the lower portion of Cunningham's 2019 income statement beginning with Pretax Income from Continuing Operations. Include any related note to the financial statements. 2. Prepare an accompanying retained earnings statement.
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Comparative Statements of Retained Earnings for Renn-Dever Corporation were reported as follows for the fiscal years ending December 31, 2022, 2023, and 2024. D Statements of Retained Earnings Year 2022 2023 2024 Balance at beginning of year Net income (loss) Deductions: Stock dividend (35,400 shares) Common shares retired, September 30 (140,000 shares) Common stock cash dividends Balance at end of year At December 31, 2021, paid-in capital consisted of the following: Common stock, 1,910,000 shares at $1 par $ 1,910,000 7,490,000 Paid in capital-excess of par No preferred stock or potential common shares were outstanding during any of the periods shown. Numerator . * • RENN-DEVER CORPORATION Denominator Required: Compute Renn-Dever's earnings per share as it would have appeared in income statements for the years ended December 31, 2022, 2023, and 2024. Note: Negative amounts should be indicated by a minus sign. W ▪ For the Years Ended December 31 2023 $ 5,584,452 2,310,900 2024 $…
Comparative Statements of Retained Earnings for Renn-Dever Corporation were reported as follows for the fiscal years ending December 31, 2019, 2020, and 2021. RENN-DEVER CORPORATION Statenents of Retained Earnings For the Years Ended Decenber 31 2020 66,894,692 45,524, 452 $5,674, 552 2,290, 900 2021 2019 Balance at beginning of year Net incone (loss) Deductions: Stock dividend (35,000 shares) Common shares retired, September 30 (120, 000 shares). Common stock cash dividends Balance at end of year 3,313, 700 (150, 100) 247,000 217,660 703, 000 66,894, 692 45, 524, 452 894,950 $9,066, 442 At December 31, 2018, paid-in capital consisted of the following: Common stock, 1,870,000 shares at 61 par Paid in capital-exces of par 61,870,000 7,470, 000 No preferred stock or potential common shares were outstanding during any of the periods shown. Required: Compute Renn-Dever's earnings per share as it would have appeared in income statements for the years ended December 31, 2019, 2020, and 2021.…