Question

Shown below in T-account format are the changes affecting the retained earnings of Brenner-Jude Corporation during 2018. At January 1, 2018, the corporation had outstanding 105.0 million common shares, $1.5 par per share.

Retained Earnings ($ in millions)
		106	Beginning balance
Retirement of 5.0 million common shares for $36.0 million	3.80
		82	Net income for the year
Declaration and payment of a $0.38 per share cash dividend	38.00
Declaration and distribution of a 5% stock dividend	34.50
		111.70	Ending balance

Required:
1. Prepare the journal entries to record the transactions that affected Brenner-Jude's retained earnings during 2018 based on the information provided.
2. Prepare a statement of retained earnings for Brenner-Jude for the year ended 2018.

Answer 1

1.

2.