Question
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 106.00 million common shares, $1.0 par per share.
Retained Earnings ($ in millions) | |||
86 | Beginning balance | ||
Retirement of 6.0 million common shares for $27.0 million | 2.90 | ||
73 | Net income for the year | ||
Declaration and payment of a $0.28 per share cash dividend | 28.00 | ||
Declaration and distribution of a 6% stock dividend | 24.00 | ||
104.10 | Ending balance |
Required: 1. Prepare the journal entries to record the transactions that affected Brenner-Jude's retained earnings during 2021 based on the information provided. 2. Prepare a statement of retained earnings for Brenner-Jude for the year ended 2021.
req1. journal entry
1.Record retirement of common shares.
2.Record closing entry of net income to retained earnings
3.Record declaration and payment of a $0.28 per share cash dividend.
4.Record declaration of stock dividend
req 2.Prepare a statement of retained earnings for Brenner-Jude for the year ended 2021
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