Metro Company reported the following amounts in the stockholders equity section of its balance sheet on 12/31/x1, first year of operations: Preferred stock, 10%, $100 par (10,000 shares authorized, 2,000 shares issued) $200,000 Common stock, $5 par (100,000 shares authorized, 20,000 shares issued) 100,000 APIC Common 125,000 Retained Earnings 450,000 Total $875,000

During 20x2 and 20x3, Metro took part in the following transactions concerning stockholders equity.

1. Declared and paid the annual dividends of $50,000 for 20x2. The preferred stock is cumulative. Metro did not pay any dividend in 20x1. Divide the dividend between preferred stock and common stock, and make journal entries for each dividend.
2. Purchased 1,700 shares of its own outstanding common stock for $35 per share. Metro uses the cost method.
3. Reissued 700 treasury shares for land valued at $30,000.
4. Issued 500 shares of preferred stock at $106 per share.
5. Declared a 10% stock dividend on common stock when the stock is selling for $39 per share.

Required: Prepare journal entries for these transactions.

(EPS)

1. Graham, Inc. began 2017 with 25,000 common shares outstanding and issued a 20% stock dividend on August 1. The company issued 6,000 shares on December 1. Graham also has 18,000 shares of 9%, $20 par, cumulative preferred stock outstanding on which no dividends have been paid during either 2016 or 2017. Net income for 2017 was $175,600.

Required:

Compute Graham, Inc.'s basic earnings per share for 2017.