Question
Comparative Statements of Retained Earnings for Renn-Dever Corporation were reported as follows for the fiscal years ending December 31, 2016, 2017, and 2018. RENN-DEVER CORPORATION
Comparative Statements of Retained Earnings for Renn-Dever Corporation were reported as follows for the fiscal years ending December 31, 2016, 2017, and 2018.
| RENN-DEVER CORPORATION | ||||||||||
| Statements of Retained Earnings | For the Years Ended December 31 | |||||||||
| 2018 | 2017 | 2016 | ||||||||
| Balance at beginning of year | $ | 6,794,292 | $ | 5,464,052 | $ | 5,624,552 | ||||
| Net income (loss) | 3,308,700 | 2,240,900 | (160,500 | ) | ||||||
| Deductions: | ||||||||||
| Stock dividend (34,900 shares) | 242,000 | |||||||||
| Common shares retired, September 30 (110,000 shares) | 212,660 | |||||||||
| Common stock cash dividends | 889,950 | 698,000 | 0 | |||||||
| Balance at end of year | $ | 8,971,042 | $ | 6,794,292 | $ | 5,464,052 | ||||
At December 31, 2015, paid-in capital consisted of the following:
| Common stock, 1,855,000 shares at $1 par, | $ | 1,855,000 | |
| Paid in capitalexcess of par | 7,420,000 | ||
No preferred stock or potential common shares were outstanding during any of the periods shown. Required: Compute Renn-Devers earnings per share as it would have appeared in income statements for the years ended December 31, 2016, 2017, and 2018. (Negative amounts should be indicated by a minus sign.)
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Auditing And Systems Exam Questions And Explanations
Authors: Irvin N. Gleim
10th Edition
158194246X, 978-1581942460
