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 105 million common shares, $1 par per share. 

Required: 

1. From the information provided by the account changes you should be able to re-create the transactions that affected Brenner-Jude’s retained earnings during 2021. Reconstruct the journal entries which can be used as spreadsheet entries in the preparation of a statement of cash flows. Also indicate any investing and financing activities you identify from this analysis that should be reported on the statement of cash flows. 

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

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Retained Earnings ($ in millions) 90 Beginning balance Retirement of 5 million common shares for $22 million 2 88 Net income for the year Declaration and payment of a $0.33 per share cash dividend 33 Declaration and distribution of a 4% stock dividend 20 123 Ending balance