shown below in T-account format are the changes affecting the retained earnings of Brenner-Jude Corporation during 2011. At January 1,2011, the corporation had outstanding 105 million common shares, $1 par per share.
Retained Earnings ($ in millions)
90 Beginning balance
retirement of 5
million common
shares for $22 m 2
88 Net income for
the year
Declaration and
paymentof a $.33
per share cash
dividend 33
Declaration and
distribution of a
4% stock div 20
123 Ending balance
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 2011. 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 2011.