Question
Shown below in T-account format are the changes affecting the retained earnings of Brenner-Jude Corporation during 2016. At January 1, 2016, the corporation had outstanding
Shown below in T-account format are the changes affecting the retained earnings of Brenner-Jude Corporation during 2016. At January 1, 2016, the corporation had outstanding 105 million common shares, $1 par per share. |
Retained Earnings ($ in millions) |
107 | Beginning balance | |||
Retirement of 5 million common shares for $36 million | 5 | |||
96 | Net income for the year | |||
Declaration and payment of a $0.39 per share cash dividend | 39 | |||
Declaration and distribution of a 4% stock dividend | 21 | |||
138 | Ending balance | |||
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 2016. Prepare the journal entries that Brenner-Jude must have recorded during the year for these transactions. (If no entry is required for a particular 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).)
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