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

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

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