11)

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 105.00 million common shares, $1.5 par per share.

Retained Earnings ($ in millions)
		106	Beginning balance
Retirement of 5.0 million common shares for $36.0 million	3.80
		82	Net income for the year
Declaration and payment of a $0.38 per share cash dividend	38.00
Declaration and distribution of a 5% stock dividend	34.50
		111.70	Ending balance

Required: 1. Prepare the journal entries to record the transactions that affected Brenner-Jude's retained earnings during 2021 based on the information provided.

• 1

  Record retirement of common shares.

• 2

  Record closing entry of net income to retained earnings

• 3

  Record declaration and payment of a $0.38 per share cash dividend.

• 4

  Record declaration of stock dividend

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

BRENNER-JUDE CORPORATION
Statement of Retained Earnings
For the Year Ended December 31, 2021
($ in millions)
Balance at January 1
Deductions:
Balance at December 31