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 110 million common shares, $1 par per share.

Retained Earnings ($ in millions)
		105	Beginning balance
Retirement of 10 million common shares for $34 million	3
		89	Net income for the year
Declaration and payment of a $0.37 per share cash dividend	37
Declaration and distribution of a 5% stock dividend	37
		117	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 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.