Shown below in T-account format are the changes affecting the retained earnings of Brenner-Jude Corporation during 2011

E 18-18 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)
90 Beginning balance
Retirement of 5 million common
Shares for $22 million 2
88 Net income for the year
Declaration and payment of a
$0.33 per share cash dividend 33

Declaration and distribution
Of a 4% stock dividend 20
123 ending balance

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.

Click here for the solution: Shown below in T-account format are the changes affecting the retained earnings of Brenner-Jude Corporation during 2011

The Sarbanes-Oxley Act of 2002 has been described as the most far-reaching legislation affecting business since the passage of the 1933 Securities Act

2-53. (Sarbanes-Oxley Act of 2002, LO 3) The Sarbanes-Oxley Act of 2002 has been described as the most far-reaching legislation affecting business since the passage of the 1933 Securities Act.

Required:
a. Identify the portions of the legislation that specifically affect the external audit profession and discuss how they affect the profession.
b. How does the legislation affect the internal audit profession? Identify activities that are implied in the legislation as well as activities that will likely emerge as companies implement various provisions of the Act.
c. Do you believe the legislation enhances the power and prestige of the audit profession or, alternatively, that it decreases both the power and prestige of the profession?


Click here for the solution: The Sarbanes-Oxley Act of 2002 has been described as the most far-reaching legislation affecting business since the passage of the 1933 Securities Act