Question
Comparative Statements of Retained Earnings for Renn-Dever Corporation were reported as follows for the fiscal years ending December 31, 2019, 2020, and 2021. RENN-DEVER CORPORATION
Comparative Statements of Retained Earnings for Renn-Dever Corporation were reported as follows for the fiscal years ending December 31, 2019, 2020, and 2021.
RENN-DEVER CORPORATION | ||||||||||
Statements of Retained Earnings |
| For the Years Ended December 31 | ||||||||
| 2021 |
| 2020 |
| 2019 |
|
| |||
Balance at beginning of year |
| 7,094,292 |
|
| 5,620,052 |
|
| 5,804,552 |
|
|
Net income (loss) |
| 3,326,700 |
|
| 2,420,900 |
|
| (184,500) |
|
|
Deductions: |
|
|
|
|
|
|
|
|
|
|
Stock dividend (61,500 shares) |
| 260,000 |
|
|
|
|
|
|
|
|
Common shares retired, September 30 (140,000 shares) |
|
|
|
| 230,660 |
|
|
|
|
|
Common stock cash dividends |
| 907,950 |
|
| 716,000 |
|
| 0 |
|
|
Balance at end of year |
| 9,253,042 |
|
| 7,094,292 |
|
| 5,620,052 |
|
|
At December 31, 2018, paid-in capital consisted of the following:
|
|
|
|
Common stock, 2,190,000 shares at $1 par |
| 2,190,000 |
|
Paid in capitalexcess of par |
| 7,600,000 |
|
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, 2019, 2020, and 2021. (Negative amounts should be indicated by a minus sign.)
Year | Numerator | / | Denominator | = | Earnings (Net Loss) per Share |
2019 | $(184,500) | / | 2,190,000 | = | $(0.08) |
2020 | $2,420,900 | / | = | 0 | |
2021 | $3,326,700 | / | = | 0 |
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