Shown below in T-account format are the changes affecting the retained earnings of Brenner Jude Corporation during 2018. At January 1, 2018, 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 2018. 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 2018. (You may wish to compare your solution to this problem with the parallel situation described in Exercise 18-18.)

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Retained Earnings ($ in millions) 90 Beginning balance Retirement of 5 million common shares for $22 million 2 88 Net income for the year Declaration and payment of a $0.33 per share cash dividend 3:3 Declaration and distribution of a 4% stock dividend 20 23 Ending balance