ACC306WEEK4ASSGN - E 1818 Brenner-Jude Corporation ACC306...

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E 18–18 - Brenner-Jude Corporation - ACC306 Intermediate Accounting II -AU E 18–18 - Brenner-Jude Corporation -Transactions affecting retained earnings LO6 LO7 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, $1 par per share. Required: 1. From the information provided by the account changes you should be able to recreate the transactions that affected Brenner-Jude’s retained earnings during 2011. Prepare the journal entries that Brenner-Jude must have recorded during the year for these transactions. 2. Prepare a statement of retained earnings for Brenner-Jude for the year ended 2011. 1. Retirement of common shares ($ in millions) Common stock (5 million shares x $1 par per share) ........................................ 5 Paid-in capital – excess of par ($22 – 5 – 2) ...................................................... 15 Retained earnings (given) ................................................................................... 2 Cash (given) ................................................................................................... 22 Net income closed to retained earnings Income summary .............................................................................................. 88 Retained earnings (given) ............................................................................. 88 Declaration of a cash dividend Retained earnings (given) ................................................................................... 33 Cash ............................................................................................................. 33 Declaration of a stock dividend Retained earnings (given) ................................................................................... 20 Common stock ([105-5] x 4%) million shares at $1 par per share) ............ 4 Paid-in capital – excess of par (difference) .................................................. 16 2. Brenner-Jude Corporation Statement of Retained Earnings F OR THE YEAR ENDED D ECEMBER 31, 2011 ($ in millions) Balance at January 1 $ 90 Net income for the year 88 Deductions : Retirement of common stock (2) Cash dividends of $.33 per share (33) 4% stock dividend (20)
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Balance at December 31 $123 E 18–24 - Softech Canvas Goods - ACC306 Intermediate Accounting II -AU E 18–24 - Softech Canvas Goods - Profitability ratio LO1 Comparative balance sheets for Softech Canvas Goods for 2011 and 2010 are shown below. Softech pays no dividends, and instead reinvests all earnings for future growth. Required: 1. Determine the return on shareholders’ equity for 2011. The return on shareholders' equity is computed by dividing net income by average shareholders' equity. [$200 – 120]* ÷ ([$600 + 520] /2) = 14.29% 2. What does the ratio measure? It measures the ability of company management to generate net income from the resources that owners provide. P 18–5 Branch-Rickie Corporation - ACC306 Intermediate Accounting II -AU P 18–5 Branch-Rickie Corporation - Shareholders’ equity transactions; statement of shareholders’ equity LO6 through LO8 (see included excel file) Listed below are the transactions that affected the shareholders’ equity of Branch-Rickie Corporation during the period 2011–2013. At December 31, 2010, the corporation’s accounts included: a. November 1, 2011, the board of directors declared a cash dividend of $.80 per share on its common shares, payable to shareholders of record November 15, to be paid December 1.
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