Question 3 (of 3) 3. value 25.00 points Shown below in T-account format are the

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Question 3 (of 3) 3. value 25.00 points Shown below in T-account format are the changes affecting the retained earnings of Brenner-Jude Corporation during 2016. At January 1, 2016, the corporation had outstanding 107 million common shares, S1 par per share. Rotained Earmings (S in millions) 92 Beginning balance Retirement of 7 million common shares for $21 million 81 Net income fore year Declaration and payment of a $0.35 per share cash dividend Declaration and distribution of a 4% stock dividend 35 24 110 Ending balance Type here to search

Explanation / Answer

journal entry General Journal Debit Credit 1) common stock (7m*$1 ) 7 retained earnings 4 paid in capital in excess of par 10 cash 21 2) income summary 81 net income 81 3) Retained earnings 35 cash 35 4) Retained earnings 24 common stock (107-7)*4%*1 4 paid in capital in excess of par 20

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