Shown below in T-account format are the changes affecting the retained earnings of Brenner-Jude Corporation during 2018. At January 1, 2018, the corporation had outstanding 102.5 million common shares, $1.0 par per share. Retained Earnings ($ in millions) 72 Beginning balance Retirement of 2.5 million common shares for $19.5 million 2.20 66 Net income for the year Declaration and payment of a $0.21 per share cash dividend 21.00 Declaration and distribution of a 3% stock dividend 14.00 100.80 Ending balance Required: 1. Prepare the journal entries to record the transactions that affected Brenner-Jude's retained earnings during 2018 based on the information provided. 2. Prepare a statement of retained earnings for Brenner-Jude for the year ended 2018.
Shown below in T-account format are the changes affecting the retained earnings of Brenner-Jude Corporation during 2018. At January 1, 2018, the corporation had outstanding 102.5 million common shares, $1.0 par per share. Retained Earnings ($ in millions) 72 Beginning balance Retirement of 2.5 million common shares for $19.5 million 2.20 66 Net income for the year Declaration and payment of a $0.21 per share cash dividend 21.00 Declaration and distribution of a 3% stock dividend 14.00 100.80 Ending balance Required: 1. Prepare the journal entries to record the transactions that affected Brenner-Jude's retained earnings during 2018 based on the information provided. 2. Prepare a statement of retained earnings for Brenner-Jude for the year ended 2018.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Shown below in T-account format are the changes affecting the
| Retained Earnings ($ in millions) | |||
| 72 | Beginning balance | ||
| Retirement of 2.5 million common shares for $19.5 million |
2.20 | ||
| 66 | Net income for the year | ||
| Declaration and payment of a $0.21 per share cash dividend |
21.00 | ||
| Declaration and distribution of a 3% stock dividend |
14.00 | ||
| 100.80 | Ending balance |
Required:
1. Prepare the
2. Prepare a statement of retained earnings for Brenner-Jude for the year ended 2018.
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