Shown below in T-account format are the changes affecting the retained earnings of Brenner-Jude Corporation during 2016. At January 1, 2016, the corporation had outstanding 104 million common shares, $1 par per share.

Retained Earnings ($ in millions)

			99	Beginning balance
Retirement of 4 million common shares for $28 million	2
			83	Net income for the year
Declaration and payment of a $0.31 per share cash dividend	31
Declaration and distribution of a 5% stock dividend	26
			123	Ending balance

Required:

1.	From the information provided by the account changes you should be able to recreate the transactions that affected Brenner-Judes retained earnings during 2016. Prepare the journal entries that Brenner-Jude must have recorded during the year for these transactions.

Event 1 - Record the retirement of common shares.

Event 2 - Record the closing entry for net income.

Event 3 - Record the declaration and payment of a cash dividend.

Event 4 - Record the declaration and distribution of a stock dividend.

2.	Prepare a statement of retained earnings for Brenner-Jude for the year ended 2016.

BRENNER-JUDE CORPORATION Statement of Retained Earnings FOR THE YEAR ENDED DECEMBER 31, 2016 (S in millions) Balance at January 1 Deductions Balance at December 31