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 Declaration and payment of a $0.35 per 98 Net income for the year Share cash dividend 35 Declaration and distribution of a ______6% stock dividend 25_________________________________________ 145 Ending balance. Required: 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.) Prepare a statement of retained earnings for Brenner-Jude for the year ended 2021. Journal entry worksheet Record the retirement of common shares. Record the closing entry for net income. Record the declaration and payment of a cash dividend. Record the declaration and distribution of a stock dividend.

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 Declaration and payment of a $0.35 per 98 Net income for the year Share cash dividend 35 Declaration and distribution of a 6% stock dividend 25___________________________________ 145 Ending balance. Required: 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.) Prepare a statement of retained earnings for Brenner-Jude for the year ended 2021. Journal entry worksheet Record the retirement of common shares. Record the closing entry for net income. Record the declaration and payment of a cash dividend. Record the declaration and distribution of a stock dividend.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Related questions

Question

Retained Earnings ($ in millions)

109 Beginning balance

Retirement of 7 million common shares for

$38 million 2

Declaration and payment of a $0.35 per 98 Net income for the year

Share cash dividend 35

Declaration and distribution of a

______6% stock dividend 25_________________________________________

145 Ending balance.

Required:

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.)
Prepare a statement of retained earnings for Brenner-Jude for the year ended 2021.

Journal entry worksheet