Question

E 18–18 - Brenner-Jude Corporation -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.

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.