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Exercise 18-17 (Algo) Transactions affecting retained earnings [LO18-6, 18-7] Shown below in T-account format are the changes affecting the retained earnings of Brenner Jude Corporation

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Exercise 18-17 (Algo) Transactions affecting retained earnings [LO18-6, 18-7] 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 108 million common shares, $1 par per share. Retained Earnings (5 in millions) Beginning balance Retirement of million common shares for 93 522 million 5 82 Net Income for the year 36 Declaration and payment of a 50.36 per share cash dividend Declaration and distribution of a 5 stock dividend 26 108 Ending balance Required: 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 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 Complete this question by entering your answers in the tabs below. Required 1 Required 2 From the information provided by the account changes, you should be able to recreate the transactions that affected Brenner Jude's retained earnings during 2021. Prepare the journal entries that Brenner-Jude must have recorded during the year for these transactions (If no entry is required for a transaction/event, select "No journal entry required in the first account field. Enter your answers in millions (... 10,000,000 should be entered as 10).) Show less View transaction list Journal entry worksheet 1 2 > Record the retirement of common shares View transaction list Journal entry worksheet Record the closing entry for net income. Note: Enter debits before credits. General Journal Debit Credit Event 2 Record entry Clear entry View general journal Journal entry worksheet Record the declaration and payment of a cash dividend. Note: Enter debits before credits. Event General Journal Debit Credit 3 Record entry Clear entry View general journal DAL - Journal entry worksheet 2 3 4 Record the declaration and distribution of a stock dividend. Note: Enter debits before credits. Event General Journal Debit Credit 4 Record entry Clear entry View general journal

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