Shown below in T-account format are the changes affecting the retained earnings of Brenner-Jude Corporation during 2021. At January 1, 2021, the corporation had outstanding 107 million common shares, $1 par per share. Retained Earnings ($ in millions) 109 Beginning balance Retirement of 7 million common shares for $38 million 2 98
Shown below in T-account format are the changes affecting the
| Retained Earnings ($ in millions) | |||
| 109 | Beginning balance | ||
| Retirement of 7 million common shares for $38 million | 2 | ||
| 98 | Net income for the year | ||
| Declaration and payment of a $0.35 per share cash dividend | 35 | ||
| Declaration and distribution of a 6% stock dividend |
25 | ||
| 145 | Ending balance |
Required:
1. From the information provided by the account changes, you should be able to recreate the transactions that affected Brenner-Jude’s retained earnings during 2021. Prepare the
2. Prepare a statement of retained earnings for Brenner-Jude for the year ended 2021.
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