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 109 million common shares, $1 par per share. Retained Earnings ($ in millions) 104 Beginning balance Retirement of 9 million common shares for $33 million 2 88 Net income for the year Declaration and payment of a $0.36 per share cash dividend 36 Declaration and distribution of a 4% stock dividend 35 119 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 journal entries that Brenner-Jude must have recorded during the year for these transactions. (Hint: In lieu of revenues and expenses, use an account titled "Income summary" to close net income or net loss.) 2. Prepare a statement of retained earnings for Brenner-Jude for the year ended 2021.

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 9E
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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 109 million common shares, $1 par per share.
Retained Earnings ($ in millions)
104 Beginning balance
Retirement of 9 million common shares for $33 million
2
88 Net income for the year
Declaration and payment of a $0.36 per share cash dividend 36
Declaration and distribution of a
4% stock dividend
35
119 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 journal entries that Brenner-Jude must have recorded during
the year for these transactions. (Hint: In lieu of revenues and expenses, use an account titled "Income summary" to close
net income or net loss.)
2. Prepare a statement of retained earnings for Brenner-Jude for the year ended 2021.
Transcribed Image Text: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 109 million common shares, $1 par per share. Retained Earnings ($ in millions) 104 Beginning balance Retirement of 9 million common shares for $33 million 2 88 Net income for the year Declaration and payment of a $0.36 per share cash dividend 36 Declaration and distribution of a 4% stock dividend 35 119 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 journal entries that Brenner-Jude must have recorded during the year for these transactions. (Hint: In lieu of revenues and expenses, use an account titled "Income summary" to close net income or net loss.) 2. Prepare a statement of retained earnings for Brenner-Jude for the year ended 2021.
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