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 105 million common shares, $1 par per share.

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 2018. Prepare the journal entries that Brenner-Jude must have recorded during the year for these transactions.
2. Prepare a statement of retained earnings for Brenner-Jude for the year ended 2018.

Retalned 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 ofa $0.33 per share cash dividend 33 Declaration and distribution of a 4% stock dividend 123 Ending balance