P18-4 Comparative statements of retained earnings for Renn-Dever Corporation were reported in its 2011 annual report as follows
P18-4 Statement of retained earnings
P18-4 Comparative statements of retained earnings for Renn-Dever Corporation were reported in its 2011 annual report as follows.
At December 31, 2008, common shares consisted of the following:
Common stock, 1,855,000 shares at $1 par$1,855,000
Paid-in capital—excess of par7,420,000
Infer from the reports the events and transactions that affected Renn-Dever Corporation’s retained earnings during 2009, 2010, and 2011. Prepare the journal entries that reflect those events and transactions.
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