Shown below in T-account format are the changes affecting the retained earnings of Brenner-Jude Corporation during 2024. At January 1, 2024, 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 2024. 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 2024.

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