Reporting Stockholders' Equity

Using the following accounts and balances, prepare the Stockholders' Equity section of the balance sheet using Method 1 of Exhibit 8. 40,000 shares of common stock authorized, and 10,000 shares have been reacquired.

Common Stock, $30 par	$960,000
Paid-In Capital from Sale of Treasury Stock	48,000
Paid-In Capital in Excess of ParCommon Stock	128,000
Retained Earnings	557,000
Treasury Stock	29,000

Stockholders' Equity
Paid-In Capital:
	$
		$
Total Paid-in Capital		$
Total		$
Total Stockholders' Equity		$

Earnings Per Share

Financial statement data for the years ended December 31 for Dovetail Corporation follow:

	20Y3		20Y2
Net income	$740,500		$589,000
Preferred dividends	$113,000		$113,000
Average number of common shares outstanding	50,000	shares	40,000	shares

a. Determine the earnings per share for 20Y3 and 20Y2. Round your answers to two decimal places.

20Y3	$ per share
20Y2	$ per share

b. Does the change in the earnings per share from 20Y2 to 20Y3 indicate a favorable or an unfavorable trend?