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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
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 105 million common shares, $1 par per share. Beginning balance Net income for the year Retained Earnings ($ in millions) 107 Retirement of 5 million common shares for 5 $36 million 96 Declaration and payment of a $0.39 per 39 share cash dividend Declaration and distribution of a 21 4% stock dividend 138 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 (i.e., 10,000,000 should be entered as 10).) 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. General Journal Debit Credit Event 3 Record entry Clear entry View general journal Journal entry worksheet Record the declaration and distribution of a stock dividend. Note: Enter debits before credits. General Journal Debit Credit Event 4 Record entry Clear entry View general journal Required 1 Required 2 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 $ 107 Deductions Balance at December 31
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