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 102 million common shares, $1 par per share.

Retained Earnings ($ in millions)
		97	Beginning balance
Retirement of 2 million common shares for $26 million	5
		81	Net income for the year
Declaration and payment of a $0.40 per share cash dividend	40
Declaration and distribution of a 6% stock dividend	22
		111	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 2021. Prepare the journal entries that Brenner-Jude must have recorded during the year for these transactions. (Hint: In lieu of revenues and expenses, use an account titled Income summary to close net income or net loss.) 2. Prepare a statement of retained earnings for Brenner-Jude for the year ended 2021.