Problem 19-9 EPS from statement of retained earnings [L019-4, 19-5, 19-6] Compar

Question

Problem 19-9 EPS from statement of retained earnings [L019-4, 19-5, 19-6] Comparative Statements of Retained Eamings for Renn-Dever Corporation were reported as follows for the scal years ending December 31, 2014, 2015, and 2018 RENN-DEVER CORPORATION Statements of Retained Earnings the Years Ended December 31 Balance at beginning of year Net income (loss) 2014 2015 6,962,692 $5,584,452 $5,684,552 3,314,700 2,300,900 (100,100) 2016 Stock dividend (53,700 shares) Common shares retired, September 30 (100,000 shares) Common stock cash dividends 218,660 895,950704,000 Balance at end of year $9,133,442 $6,962,692 $5,584,452 Atl December 31, 2013, paid-in capital consisted of the following Common stock, 1,890,000 shares at $1 par $1,890,000 Paid in capital-excess of par 7480,000 No preferred stock or potential common shares were outstanding during any of the periods shown. Compute Renn-Dever's earnings per share as it would have appeared in income stalements for the years ended December 31, 2014, 2015, and 2016. (Negative amounts should be indicated by a minus sign.) 2014 2015 2016 ?0 F3 F7 4

Explanation / Answer

CALCULATION OF THE NUMBER OF SHARES OUTSTANDING Year 2014 Year 2015 Year 2016 PARTICULARS Opening Shares 1890000 1890000 1790000 ($ 18,90,000 / $ 1) Add (Less) for Adjustement : 0 1) Retirement of Common Shares -100000 2) Stock Dividend 53700 Closing Number of Shares 1890000 1790000 1843700 CALCULATION OF THE EARNING PER SHARES Year 2014 Year 2015 Year 2016 Net income available for Common shareholders $                    -1,00,100 $                     23,00,900 $                        33,14,700 Divide By "/" By "/" By "/" By Number of Shares Outstanding 1890000 1790000 1843700 Earning Per Shares $                            -0.05 $                               1.29 $                                   1.80

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