In: Accounting
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 |
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Statements of Retained Earnings |
For the Years Ended December 31 |
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2021 |
2020 |
2019 |
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Balance at beginning of year |
7,094,292 |
5,620,052 |
5,804,552 |
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Net income (loss) |
3,326,700 |
2,420,900 |
(184,500) |
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Deductions: |
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Stock dividend (61,500 shares) |
260,000 |
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Common shares retired, September 30 (140,000 shares) |
230,660 |
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Common stock cash dividends |
907,950 |
716,000 |
0 |
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Balance at end of year |
9,253,042 |
7,094,292 |
5,620,052 |
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At December 31, 2018, paid-in capital consisted of the
following:
Common stock, 2,190,000 shares at $1 par |
2,190,000 |
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Paid in capital—excess of par |
7,600,000 |
||
No preferred stock or potential common shares were
outstanding during any of the periods shown.
Required:
Compute Renn-Dever’s 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 |