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Comparative statements of retained earnings for Renn-Dever Corporation were reported in its 2021 annual report as follows.

RENN-DEVER CORPORATION

Statements of Retained Earnings

For the Years Ended December 31202120202019Balance at beginning of year$6,962,452$5,659,552$5,824,552Net income (loss)3,408,7002,300,900(165,000)Deductions:Stock dividend (34,500 shares)241,500Common shares retired (120,000 shares)240,000Common stock cash dividends899,950758,0000Balance at end of year$9,229,702$6,962,452$5,659,552

At December 31, 2018, common shares consisted of the following:

Common stock, 1,835,000 shares at $1 par$1,835,000Paid-in capitalexcess of par11,010,000

Required:

Infer from the reports the events and transactions that affected Renn-Dever Corporation's retained earnings during 2019, 2020, and 2021. 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.)(If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)