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.)

Journal entry

1 Record the retirement of common shares.

2 Record the closing entry for net income.

3 Record the declaration and payment of a cash dividend.

4 Record the declaration and distribution of a stock dividend.

Required 2

Prepare a statement of retained earnings for Brenner-Jude for the year ended 2021.

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 106 million common shares, $1 par per share. Beginning balance Net income for the year Retained Earnings ($ in millions) 101 Retirement of 6 million common shares for $30 million 85 Declaration and payment of a $0.33 per share cash dividend Declaration and distribution of a 4% stock dividend 119 Ending balance Prepare a statement of retained earnings for Brenner-Jude for the year ended 2021. (Enter your answers in millions (i.e., 10,000,000 should be entered as 10).) BRENNER-JUDE CORPORATION Statement of Retained Earnings FOR THE YEAR ENDED DECEMBER 31, 2021 ($ in millions) Balance at January 1 $ 101 Deductions: Balance at December 31