Acc306 Intermediate Accounting: E18-18 Shown below in T-account format (Brenner-Jude)

Acc306 Intermediate Accounting
Week 4
E18–18 Transactions affecting retained earnings
Shown below in T-account format are the changes affecting the retained earnings of Brenner-Jude Corporation during 2011. At January 1, 2011, the corporation had outstanding 105 million common shares, $1 par per share. Retained Earnings ($ in millions) Retirement of 5million common shares for $22million 2 Beg Bal 90 Declaration and payment of a $0.33 per share cash dividend 33 Net income 88 Declaration and distribution of a 4% stock dividend 20 End Bal $123

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 2011. Prepare the journal entries that Brenner-Jude must have recorded during the year for these transactions.
2. Prepare a statement of retained earnings for Brenner-Jude for the year ended 2011.
Powered by